Kenya’s motor industry has posted a firm rise in vehicle demand over the first four months of the year, as easing lending rates and stronger activity in logistics, construction, and public service spending lifted sales across major dealers.
Figures from the Kenya Motor Industry Association (KMIA) indicate that new vehicle uptake increased by 12.2 per cent between January and April, even as businesses continued to face pressure from high operating costs, global instability linked to the Middle East conflict, and uneven consumer spending.
The industry report shows that sales by 11 leading dealers reached 2 units during the period, compared to 2 units recorded in the same months last year. Much of the growth was anchored on commercial vehicles, with a large share of the market made up of Completely Knocked Down units assembled locally.
Isuzu East Africa led the sector once again, selling 2,521 units, up from 2,0 units in the previous year. The company controlled more than half of the market at 53 per cent, strengthening its lead over competitors.
CFAO Mobility followed with 1,352 units, rising from 1,303 units last year and accounting for 2 2of total sales. Simba Corporation trailed behind among the major dealers with 3 units recorded during the period.
KMIA links the improved performance mainly to lower borrowing costs after successive Central Bank of Kenya rate cuts. The base lending rate has eased from 12 per cent last year to the current per cent, making asset financing more accessible for buyers.
Credit conditions across the economy also showed improvement. Lending to the private sector grew at 1 per cent in March 202 compared to February 202 and -2.per cent in January 2025. Sectors such as construction, agriculture, trade, and consumer durables recorded stronger credit flows, reflecting improved demand as interest rates fell.
Commercial vehicles remained the backbone of the market. Trucks led overall demand at 2,102 units, followed by pickups at 1,3 units. Buses, commonly used for public transport and corporate services, recorded 5 units, while prime movers stood at 2 units.
“A notable driver for the growth was the progressive C interest rate decrease with lower financing costs enabling more vehicle purchases and a recovery in business confidence,” KMIA said in a report.
The association also pointed to sustained government leasing programmes, continued investment in school transport, and ongoing infrastructure projects as key drivers of demand. Recovery in the transport sector after the Covid-19 slowdown, alongside procurement by the National Police Service and government agencies, also supported sales.