Kenyan Auto Industry Accelerates with New Assembly Lines

As figures are compiled and become available, it is apparent that the auto industry in Kenya is accelerating with a 16.4% growth in 1H25 compared to the same semester in 2024. In absolute terms, Kenya produced 6,823 vehicles during the first half of 2025, compared to 5,778 in the same corresponding period in 2024.

Following #TICAD9, Kenya secured a USD 169 million in financing through the emission of #SamuraiBonds on the Japan Stock Exchange. Thus, Kenya becomes the 2nd country in Africa to take advantage of the Japanese capital market for funding its development.

At the policy level, the Government of Kenya has recently exempted tariffs on imported parts that goes into the assembly. The new policy appears to be bearing fruit as Japanese auto makers and their local partners are boosting their investment into the Kenya market.

In particular, CFAO Motors will start producing the Toyota Fortuner in Kenya itself soon. In the first year, the target is to output 250 vehicles and the plant will sustain some 600 direct and indirect jobs. In addition, German car maker Volkswagen has already commenced the assembly of the Touareg and Tiguan model at the Kenya Vehicles Manufacturing (KVM) plant in Thika.

To create more incentives, Juma Mukhwana, PS of Ministry of Industry of Kenya, announced on 3 September 2025 that new legislation will be enacted soon in line with the ‘Buy Kenya, Build Kenya’ policy. PS Mukhwana revealed that the bill will encourage the burgeoning a whole local vehicle manufacturing ecosystem which will foster Local Value Addition (#LVA).

On the EV front, MojaEV and Spiro announced plans to set up new assembly lines in Kenya. MojaEV plans to output some 1,500 EV annually, while Spiro plans to build two assembly plants in Kenya.