Kenya’s local vehicle assembly industry continues to grow, with the number of vehicles put together in the country rising sharply in the first nine months of 2025.
The growth reflects both the entry of new models and a rising number of dealers investing in local production, a trend expected to strengthen in the coming years.
According to the Kenya National Bureau of Statistics (KNBS), firms such as CFAO Mobility Kenya, Simba Corp, Isuzu East Africa, and Transafrica Motors produced 10,075 vehicles from January to September, up from 9,040 units during the same period in 2024.
Dealers are increasingly turning to local assembly to take advantage of government tax incentives designed to boost the automotive sector and create jobs.
The incentives include an exemption from the 35 percent import duty that applies to fully built vehicles. Components imported as completely knocked down (CKD) kits for assembly enjoy excise duty exemptions ranging from 20 to 35 percent depending on engine type and fuel.
Assemblers also benefit from a reduced import declaration fee of 2.5 percent and a lower Railway Development Levy of 1.5 percent, compared to the standard rates.
Local assembly allows car dealers to offer lower prices, making new vehicles more affordable compared to imported used cars, which remain the most common choice for buyers.
Commercial vehicles, including pick-ups, buses, and trucks, have seen the most investment in domestic assembly, while passenger cars are increasingly being assembled locally to compete on pricing with used imports.
Some new car models from markets like China, Malaysia, and India are gaining traction, offering competitive prices that rival second-hand imports.
Global Motors Centre, the distributor for Jetour cars in Kenya, plans to invest Sh1.4 billion to start assembling these models in Mombasa from the first quarter of 2026. Electric vehicle company Tad Motors has also rolled out its first five locally assembled sedans and SUVs, signaling growing interest in green mobility.
Most assembled vehicles are sold within Kenya, with a portion exported to Uganda and other East African markets.
Key assembly plants supporting this growth include Associated Vehicle Assemblers, operated by Simba Corp, Isuzu East Africa, and Kenya Vehicle Manufacturers (KVM), which works with several dealers, including Urysia Limited.
