Automotive industry in Kenya

The Automotive industry in Kenya is primarily involved in the assembly, retail and distribution of motor vehicles. There are a number of motor vehicle dealers operating in the country.[1]

Local automotive companies
Mobius II

Kenya is currently attempting to completely build its own cars. After building its first car in the late 80's (the Nyayo Car), Kenya has a shot at the industry with Mobius Motors, which was founded in 2009. with KIBO Africa Limited, motorcycles have been rolling out from this local manufacturer.

Challenges

The established dealers face intense competition from imported second-hand vehicles, mainly from Japan and United Arab Emirates. Another issue is that there is more demand for second-hand vehicles rather than new ones because Kenya is generally a lower middle-income country. Thus, Mobius Motors was established to provide low cost cars at about KES. 1,100,000 (US$11,000).[2]

In the beginning of 2019, the Government of Kenya proposed to implement a National Automotive Policy which effectively would see an eventual ban on imports of second hand passenger and commercial vehicles. However, this was faced with stiff resistance from the used car industry with the government eventually having to suspend their push to change the regulations on 7 May 2019.[3]

Timeline of the Kenyan car industry
Nyayo Pioneer (1990)
  • 1960s – Volkswagen assembled the Beetle in Kenya[4]
  • 1976 – First Kenyan Assembled car by Kenya Vehicle Manufacturerers
  • 1977 – First Assembled car by Associated Vehicle Assemblers Ltd.
  • 1986 – Nyayo Car, Kenya's first car is built. The car achieves 120 km/h (75 mph)
  • 2009 – Mobius Motors is established by Joel Jackson
  • 2013 – 52.3% of new cars sold in Kenya are assembled in Kenya[5]
  • 2016 – Volkswagen starts assembly of Polo Vivo in Kenya in Cooperation with DT Dobie[6]

Major retailers

Major assemblers

Future assemblers

References
  1. PricewaterhouseCoopers. "PwC Kenya: Industries: Automotive". PwC.
  2. "New model of Kenyan made vehicle Mobius to cost Sh1.3m". Business Daily. 26 July 2017. Retrieved 10 October 2019.
  3. "Kenya Used Car Importation Age Changes Leading to Limitations of Car Imports into Kenya". Auto Kenya Ltd. 24 October 2019. Retrieved 23 October 2019.
  4. "Volkswagen inaugurates vehicle production facility in Kenya". Retrieved 10 January 2017.
  5. "More than half of new cars assembled in Kenya on lower taxes". businessdailyafrica.com. 15 December 2020.
  6. "First Kenyan made Volkswagen Polo Vivo unveiled". Archived from the original on 10 January 2017. Retrieved 10 January 2017.
  7. "Peugeot starts assembly of cars at Thika factory". Business Daily. 26 September 2017. Retrieved 10 October 2019.
  8. "Honda Worldwide – March 27, 2013 "Honda Establishes New Motorcycle Subsidiary in Kenya"". honda.com. Archived from the original on 22 February 2015.
  9. Honda sets up factory to make motorcycles. YouTube. 1 August 2013.
  10. "Toyota drops bid to buy AVA". businessdailyafrica.com. 15 December 2020.
  11. "Ventures Africa – Toyota Launches $4.9m Assembly Plant In Kenya". ventures-africa.com.
  12. "TVS Makes A Foray Into Kenya – Overdrive". overdrive.in.
  13. TVS to begin motorcycle assembling plant in Kenya. YouTube. 30 July 2013.
  14. Nyabiage, Jevans (15 May 2008). "Kenya: Tata to Set Up Local Bus Plant". The Nation (Nairobi). Retrieved 23 August 2017.
  15. http://www.the-star.co.ke/news/article-113038/tata-draws-plans-kenyan-vehicle-market%5B%5D
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