Kenya’s eBee Cuts Staff, Faces Tax Blow as Electric Bike Uptake Stalls

Kenyan electric mobility startup eBee has scaled back its operations after cutting nearly its entire workforce, exposing cracks in the country’s drive for two-wheeled electrification.

By early 2025, the company, with a goal to place one million e-bicycles on African roads by 2030, had dismissed most of its 50 employees across departments. 

Internal documents sent to staff in February cited “a substantial decline in revenue, extremely high cost of operations, an unsustainable employee wage bill, and restructuring of the business to adopt a leaner, more efficient structure.”

Barely 10 employees remained after the first round of layoffs, but they too left by mid-year. “We understand that this news is difficult, and we share in the sadness of having to take these steps,” the company wrote in its redundancy notice. 

“Please know that we are doing everything we can to minimize the impact of these layoffs, and that the decision is driven solely by the need to ensure the company’s sustainability in the face of the current economic climate.”

This reveals a challenge in Kenya’s e-mobility market, where delivery riders and commuters are opting for electric motorbikes instead of bicycles. Riders point to cost and power. 

eBee’s eBX model, priced at KES 99,999 ($774) or about KES 9,500 ($74) per month on lease, remains far out of reach for the very workers it targeted, such as boda boda operators. Even with financing options, demand never picked up.

The company’s problems increased when the Tax Appeals Tribunal ruled against it in February 2025 in a dispute with the Kenya Revenue Authority (KRA). eBee had declared its imports as parts for local assembly, which would attract a 10% duty, but regulators disagreed. 

The tribunal ruled the shipments were fully built electric bicycles, subjecting them to a 25% import duty, 16% VAT, and an excise duty of KES 10,520 per unit. The decision left eBee with an additional tax bill of KES 2.78 million ($20,857).

The ruling stressed that the motor, not the battery, is the key defining part of an electric bicycle. eBee’s claim that sourcing batteries locally qualified its products as “assembled in Kenya” was dismissed. 

Industry watchers warn the case could set a precedent for other electric mobility firms, including BasiGo, Ampersand, and Spiro, which also rely on importing parts.

eBee, however, says it is not shutting down. In a written statement, the startup said it “remains operational and focused on serving customers and partners” while maintaining warranty and after-sales services. It also noted a “renewed strategy to strengthen commercial traction and ensure sustainable growth,” but gave no details on which locations were being merged or what form the strategy would take.

Founded in 2021 by Sten Van Der Ham, Jaap Maljers, Isidoor Maljers, and Joost Boeles, eBee built its brand on assembling and leasing e-bikes for courier companies such as Jumia, Glovo, and Bolt. 

The startup also expanded into Uganda and Rwanda through partnerships. Models like the Nyuki cargo bike, retailing at KES 119,999, were marketed for last-mile delivery.

But the timing worked against it. Kenya’s EV adoption remains weak. By mid-2025, only 671 electric vehicles were officially registered, nearly half of them motorcycles. A report by ALN Kenya has already called for clearer tax guidelines, incentives, and stronger public-private partnerships to prevent more startups from folding under regulatory and financial pressure.

Leadership changes have added more tension. In March, CEO and co-founder Sten Van Der Ham resigned, weeks after the company lost its tax dispute. His departure revealed the fragility of a business once seen as a pioneer in Africa’s clean mobility revolution.

The post Kenya’s eBee Cuts Staff, Faces Tax Blow as Electric Bike Uptake Stalls appeared first on Tech | Business | Economy.