Kenya’s vehicle assembly sector has recovered from two years of declining half-year output, with 6,723 units assembled in the first half of 2025, up 16.4% from 5,778 units in H1 2024.
- •The numbers highlight renewed momentum in the industry: January opened at 921 units, a modest rise from the year before, while February climbed to 1,317, a year‑on‑year gain of 24.9%.
- •The numbers have stayed above 1,000 units since with 1,135 in March, 1,014 in April, 1,256 in May and 1,080 in June.
- •In comparison, the first halves of 2022, 2023, and 2024 delivered 7,450, 6,682, and 5,778 units respectively.
Policy and Financing Support
The rebound is underpinned by new government incentives, including duty exemptions on imported parts, designed to attract investment in local assembly. In August 2025, Kenya secured $169 million in Samurai financing from Japan, part of which is earmarked for boosting vehicle assembly and auto-parts manufacturing.
Expanding Assembly Base
Recent months have seen significant developments in Kenya’s assembly landscape:
- •CFAO Motors launched local assembly of the Toyota Fortuner at AVA Mombasa, with plans to produce 350 units in the first year and create 600 jobs.
- •Volkswagen models, including the Touareg and Tiguan, returned to local assembly at Kenya Vehicle Manufacturers in Thika through a renewed partnership with Germany, with emphasis on technology transfer and green mobility.
- •MojaEV and Spiro announced new EV assembly lines in Kenya, with MojaEV targeting 1,500 vehicles annually and Spiro planning two plants in 2025. BasiGo continues to expand electric bus assembly at AVA Mombasa.
Despite the 14.6% production decline in 2024, the rebound in 2025 signals resilience. Installed annual capacity stands at 46,000 units, leaving significant headroom for growth. Government policy, international financing, and the entry of electric vehicle assemblers position the sector for further expansion in the coming years.
