Inside Kiira Motors’ blueprint for affordable electric mobility in Uganda

May 11, 2025 in Companies, Financial Services, Science and Technology, The Business Interview, Transport by Editor

As the global automotive industry accelerates toward electric mobility, emerging markets like Uganda face the unique challenge of how to drive adoption while making electric vehicles (EVs) affordable and accessible to the broader population.
With over 90 percent of vehicle purchases in Uganda dominated by second-hand imports, affordability, ease of service, and trust in new technologies are critical to building a viable EV market. Kiira Motors Corporation (KMC), Uganda’s national automotive manufacturer, is tackling these challenges head-on with a comprehensive strategy to localize EV production and promote clean, sustainable transport.

Local Production, Local Solutions
At the core of KMC’s affordability plan is domestic manufacturing. The newly operational Kiira Vehicle Plant in Jinja enables local production of EVs, cutting costs associated with importing fully built units—such as tariffs, freight, and customs.
“By designing and producing vehicles tailored to Uganda’s roads, climate, and usage patterns, we aim to deliver EVs that are both durable and affordable,” says Paul Isaac Musasizi, CEO of Kiira Motors.

Policy Advocacy and Public Sector Demand
KMC is also leveraging policy to stimulate demand. The Government of Uganda has instituted tax incentives, including 0pc import duty and VAT on EVs produced locally and charging equipment. In addition, the government is being urged to prioritize procurement of Kiira-made EVs for public fleets—a move that would stimulate early demand and help drive down production costs through economies of scale.
To improve access to financing, KMC is working with financial institutions and climate finance initiatives to develop low-interest loan products tailored for EV buyers, especially commercial operators.

Innovative Ownership Models
To break through the high upfront costs of EVs, KMC is exploring leasing and subscription models that allow customers to pay in predictable, monthly installments. A more ambitious approach includes Battery-as-a-Service (BaaS), where buyers lease the most expensive EV component—the battery—separately, significantly lowering initial purchase prices.
For lower-income and rural communities, microfinance partnerships and group ownership models are under consideration to enable collective access to EVs for shared transport needs.

Phased Market Entry and Product Strategy
KMC’s go-to-market approach prioritizes high-use commercial vehicles where the cost benefits of EVs—such as reduced fuel and maintenance expenses—are more immediately visible. The company’s E-Bus Xpress initiative, currently piloting the route between Jinja and Iganga, exemplifies this strategy in practice.
Looking ahead, KMC plans to diversify its EV portfolio, introducing a wider range of models, including more affordable personal-use vehicles as production scales and battery prices decline.

Building the EV Ecosystem
No EV transition can succeed without infrastructure. KMC is working with public and private partners to deploy charging stations in cities and along major highways, addressing concerns about vehicle range and reliability. The Iganga Technical Institute, for instance, now hosts a functional EV charging station supporting the E-Bus Xpress pilot.
To sustain operations and build local technical expertise, KMC has trained over 300 EV technicians and operators in partnership with Luweero Industries, with more to follow. Plans are also underway to establish a national network of service centers for EV maintenance.
The company is gradually building a resilient supply chain, with local content in Kiira vehicles now at 21pc and a target of 65pc within the next decade—a move expected to generate jobs and accelerate technology transfer.

Shifting Public Perception
One of the final barriers to widespread EV adoption is consumer perception. While EVs are often seen as expensive, KMC is working to educate the public about the lower total cost of ownership. Compared to traditional internal combustion engine (ICE) vehicles, EVs offer energy savings of up to 78pc and annual maintenance costs nearly half of their ICE equivalents.
Environmental and health benefits—especially in congested urban areas like Kampala—are also being emphasized to build a broader public consensus for electric mobility.
“Our blueprint for affordable EVs is grounded in local innovation, policy advocacy, and strategic partnerships. By addressing cost, infrastructure, and public awareness in an integrated manner, we are positioning electric mobility not as a luxury for the elite, but as a practical and sustainable solution for the everyday Ugandan,” Musasizi says.