Written By: Faith Jemosop
Electric Tuk-Tuks Promise a Cleaner Future But Battery Costs Are a Major Roadblock
Car & General, a leading distributor of electric tuk-tuks (three-wheeled rickshaws) in East Africa, is facing a growing challenge: while the demand for clean, affordable transportation is rising, the high cost of batteries especially lithium-ion ones, is slowing down their electric vehicle (EV) sales. Despite the company’s efforts to promote e-mobility across Kenya, Tanzania, and Uganda, the market uptake remains far lower than anticipated. For a region where tuk-tuks are essential for last-mile transport and short-distance commuting, this presents a serious bottleneck.
Battery Prices Account for Nearly Half the Cost of an Electric Tuk-Tuk
At the heart of the issue lies the economics of battery technology. A lithium-ion battery, the preferred power source for electric vehicles can cost between $2,000 and $3,000 per unit. In many cases, the battery accounts for 30% to 50% of the total cost of an electric tuk-tuk. That means that while a fossil-fuel tuk-tuk may cost around $1,500 to $2,000, an electric version can go for upwards of $3,500 placing it far out of reach for most informal-sector drivers who rely on hire-purchase agreements or microfinance.
Car & General has introduced electric tuk-tuks such as the TVS King Deluxe Electric, but even with economies of scale, the battery price remains stubbornly high. And since most of these batteries are imported, often from China or India, regional taxes, shipping costs, and currency fluctuations further inflate their retail price.
Lead-Acid Batteries: A Cheaper But Less Efficient Alternative
To navigate this cost hurdle, some manufacturers and distributors, including Car & General, have offered lead-acid battery alternatives. These are significantly cheaper, sometimes as low as $400, but come with trade-offs. Lead-acid batteries are heavier, take longer to charge (up to 8 hours), and have a much shorter lifespan (typically 1 to 1.5 years). This undermines the long-term economic case for electric tuk-tuks, since users have to replace batteries more frequently, pay higher electricity costs due to inefficiencies, and deal with prolonged downtimes.
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This dual-battery strategy, offering both lithium-ion and lead-acid options, has not solved the core problem: neither battery type is truly affordable or optimal for low-income drivers operating on slim profit margins.
Battery Leasing Models Have Not Yet Gained Momentum
One promising workaround, battery leasing or swapping, has seen success in other parts of Africa, such as Rwanda and Uganda, through companies like Ampersand and Zembo. These models allow drivers to acquire an electric tuk-tuk without paying for the battery upfront. Instead, they lease the battery and pay based on usage or charging cycles. This greatly reduces the initial cost and aligns better with the earnings structure of gig workers and small-scale transport operators.
However, in markets where Car & General operates, such as Kenya and Tanzania, battery swapping infrastructure is still in its infancy. Lack of standardization, limited charging stations, and regulatory uncertainty have prevented battery leasing from taking off at scale. Without a robust ecosystem to support battery-as-a-service models, Car & General remains locked into the high-cost ownership model.
Charging Infrastructure and Energy Costs Are Additional Barriers
Battery prices are only one part of the puzzle. The lack of widespread charging infrastructure has also made electric tuk-tuks a hard sell. Most drivers operate in informal setups, parking overnight in locations without secure or consistent access to electricity. For those using lead-acid batteries, a full charge can take 6–8 hours, resulting in significant downtime and loss of income.
Moreover, electricity costs in countries like Kenya are among the highest in Africa, averaging $0.22 to $0.30 per kWh for commercial users. This makes the operational savings from using electricity over fuel less compelling, particularly when battery inefficiencies and replacement cycles are factored in.
Import Duties and Regulatory Gaps Make Batteries Even Pricier
Import taxes on electric vehicle components remain high in East Africa. For instance, in Kenya, while the government has waived some taxes for electric vehicles, lithium-ion batteries are often still classified under general electronic components, making them subject to up to 25% import duty. Without specific exemptions for battery technology, the final retail cost of electric tuk-tuks becomes even less competitive compared to their fossil-fuel counterparts.
Additionally, the lack of clear EV-specific policy frameworks further disincentives both distributors like Car & General and prospective buyers from scaling adoption. Unlike India or China, where government subsidies, incentives, and mandated targets have boosted electric three-wheeler uptake, East African policies remain vague or inconsistently applied.
The Ripple Effect on E-Mobility and Climate Goals
The consequences of slow electric tuk-tuk adoption stretch beyond Car & General’s balance sheet. Urban centres across East Africa are struggling with air pollution, traffic congestion, and dependence on imported fuels. Tuk-tuks are a major contributor to urban emissions, and electrifying this sector could deliver significant environmental benefits. The delay in EV adoption due to battery costs means that these broader climate and health goals are also deferred.
For governments targeting net-zero emissions or planning cleaner public transport systems, electric three-wheelers are a low-hanging fruit. But until the battery price problem is addressed, adoption will remain slow and uneven.
There are several practical solutions that could accelerate adoption. First, governments should provide targeted incentives for lithium-ion batteries, including tax waivers, import duty relief, or even direct subsidies for low-cost financing. Second, Car & General and other distributors could pilot battery leasing models, possibly in partnership with energy companies or fintech start-ups that offer flexible payment structures.
Third, investments in local battery assembly or refurbishment centres could reduce dependency on imports and create jobs. Finally, standardizing battery formats across tuk-tuk models would make battery swapping a more scalable solution.
