Kenyan Members of Parliament have successfully blocked a proposed 16 percent price increase on electric bikes and buses by rejecting a move to strip them of their zero-rated Value Added Tax (VAT) status.

• The National Assembly's Finance Committee recommended retaining the zero-rated VAT status for locally assembled electric motorcycles, buses, and related components.
• This decision prevents assemblers like BasiGo, Roam, Spiro, and Arc Ride from increased production costs and higher vehicle prices.
• The proposal, part of the 2026 Finance Bill, would have changed the tax status from zero-rated to VAT-exempt, hindering VAT refunds on components and raw materials.