Kenya commissions new Toyota Hiace assembly line in industrialization boost

Kenya Vehicle Manufacturers (KVM) has officially commissioned a new Toyota Hiace assembly line at its Thika manufacturing facility, marking a significant milestone in Kenya’s automotive industrialisation journey and reinforcing the country's position as a leading vehicle manufacturing hub in East Africa.

The new assembly line forms part of a broader modernisation and expansion programme supported by a Sh2.3 billion investment by CFAO Mobility Kenya in KVM. The investment is expected to strengthen local manufacturing, support technology transfer, create jobs, and boost skills development.

The commissioning ceremony was presided over by Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, and attended by senior representatives from Toyota Motor Corporation, Toyota Tsusho Corporation, CFAO Group, government agencies, and industry stakeholders.

Speaking during the launch on June 3, 2026, CFAO Mobility Kenya Managing Director Arvinder Reel described the investment as a landmark achievement for Kenya’s manufacturing sector.

“The launch of the Toyota Hiace assembly line at KVM represents more than the introduction of a new production line—it is an investment in Kenya’s industrial future. For over 50 years, Toyota has been part of Kenya’s mobility story. Today, we take that commitment a step further by expanding local manufacturing capacity, creating skilled employment opportunities, transferring advanced production expertise, and supporting the growth of local supplier networks,” he said.

Reel added that local assembly of the Toyota Hiace will help strengthen the domestic automotive value chain while ensuring customers continue to receive vehicles built to Toyota’s global quality standards.

“By assembling the Toyota Hiace locally, we are strengthening the domestic automotive value chain while delivering world-class vehicles built to global Toyota standards and tailored for Kenyan operating conditions. This project demonstrates what can be achieved through strong partnerships between government, industry, and global manufacturers,” Reel said.

Trade CS Kinyanjui lauded the new assembly line as a milestone for Kenya.

“For decades, Kenya has imported this iconic vehicle. Today, we marked a major milestone in our industrial journey with the launch of the local assembly of the Toyota Hiace matatu at Kenya Vehicle Manufacturers (KVM) in Thika,” Kinyanjui said.

The investment is expected to generate more than 200 direct jobs and over 600 indirect jobs across the automotive value chain. Kenyan engineers and assembly specialists have also undergone advanced training programmes in South Africa and Cambodia to enhance technical expertise and quality management skills.

KVM expects to assemble approximately 600 Toyota Hiace units during the first year of production, with capacity projected to increase in line with market demand and continued support for local vehicle assembly under the government's "Buy Kenya, Build Kenya" framework.