Kenya’s automotive sector is gaining momentum with new electric vehicle (EV) assembly initiatives, marking an impressive turnaround in performance.
Recognized as one of Africa’s top vehicle markets, the country has recorded notable progress in recent months, with its first-half performance in 2025 standing out as the strongest in years.
A total of 6,723 vehicle units were assembled in Kenya during the first half of the year, representing a 16.4% increase from 5,778 units in the same period of 2024.
By comparison, the first halves of 2022 and 2023 yielded 7,450 and 6,682 units, respectively.
Monthly figures remained above 1,000 units since March, beginning with 1,135, dipping slightly to 1,014 in April, then rebounding to 1,256 in May, before settling at 1,080 in June.
The sector’s revival has been supported by new government incentives, particularly tariff exemptions for imported parts, designed to attract foreign investment.
This approach is paying off, with Japan recently pledging up to 25 billion yen ($169 million) in Samurai financing to bolster Kenya’s vehicle assembly and energy industries.
The agreement was led by Kenya’s Foreign Affairs Minister Musalia Mudavadi and Nippon Export and Investment Insurance (NEXI) CEO Atsuo Kuroda.
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“This facility will strengthen our local vehicle assembly and parts manufacturing industry while also addressing electricity transmission and distribution losses, currently standing at about 23% of our national output,” Mudavadi said in a post on X.
The Kenyan Wall Street reports that major projects are already underway, including AVA Mombasa’s collaboration with CFAO Motors to locally produce the Toyota Fortuner.
The initiative aims to deliver 350 vehicles in its first year while creating 600 jobs.
Green mobility is also taking center stage through international partnerships and technology transfers.
A renewed collaboration with Germany has brought Volkswagen models such as the Touareg and Tiguan back to local assembly at Kenya Vehicle Manufacturers in Thika.
Meanwhile, EV-focused ventures are gaining traction, with MojaEV planning to produce 1,500 vehicles annually and Spiro preparing to establish two factories in the country by 2025.
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Image Credit: Business Insider Africa
