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 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.

Recent months have seen significant developments in Kenya’s assembly landscape:

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.