The hum of pneumatic drills in Thika and Mombasa is beginning to drown out the roar of imported engines at the Port of Mombasa. For decades, the “mitumba” (used import) vehicle was the undisputed king of Kenyan roads, a symbol of affordability and status. But a quiet revolution has taken hold. New data reveals that local vehicle assembly has grown by 35 per cent over the last seven years, a figure that signals not just industrial growth, but a fundamental restructuring of the national economy.

This surge is not accidental. It is the calculated result of a government determined to keep hard currency within its borders and manufacturers like Isuzu East Africa and CFAO Mobility (formerly Toyota Kenya) betting big on local capacity. For the average Kenyan, the shift is visible: the police car patrolling the estate, the “matatu” ferrying commuters, and the pick-up delivering farm produce are increasingly likely to have been bolted together on Kenyan soil rather than in Japan or Singapore.

The Numbers Game

According to data from the Kenya Motor Industry Association (KMI) and the Kenya National Bureau of Statistics (KNBS), the volume of locally assembled units has risen steadily from the lows of 2018. By the third quarter of 2025 alone, local assembly numbers had climbed 24.5 per cent year-on-year, defying broader economic headwinds.

Isuzu East Africa continues to dominate the leaderboard, controlling nearly half the market with its ubiquitous D-Max pick-ups and commercial trucks. “The storm appears to be over,” an Isuzu spokesperson noted earlier this year, referencing the stabilization of the shilling which has lowered the cost of importing Completely Knocked Down (CKD) kits—the parts used to assemble vehicles locally.

• Market Leaders: Isuzu East Africa (approx. 47% share) and CFAO Mobility (approx. 30% share).
• Growth Driver: Commercial vehicles (trucks, buses) account for the bulk of local assembly due to import bans on used equivalents.
• New Players: The entry of electric vehicle assemblers like BasiGo and MojaEV is adding a new, green layer to the production statistics.

Policy as the Engine

The 35 per cent growth is inextricably linked to the implementation of the KS 1515 standard and the National Automotive Policy. The government’s decision to ban the importation of used commercial vehicles (trucks and buses) older than zero years—effectively forcing buyers to purchase new, locally assembled units—was the masterstroke.

Coupled with the “Buy Kenya, Build Kenya” initiative, which mandates that state agencies lease locally assembled vehicles, the policy has guaranteed a market for manufacturers. “We are seeing the fruits of policy consistency,” noted a senior analyst at the Kenya Association of Manufacturers (KAM). “When the government stopped importing used police vehicles and started leasing locally assembled units, it gave assemblers the confidence to invest in expansion.”

This confidence was further bolstered in late 2025 by a $169 million (approx. KES 22 billion) financing injection—part of the “Samurai Bond” deal with Japan—specifically earmarked to support the automotive sector and allied industries.

The ‘Kenyan Lens’: Jobs and Shillings

For the “wananchi,” this macroeconomic shift has tangible impacts. Local assembly does not just mean bolting parts together; it creates a demand for local components. Manufacturers are increasingly sourcing glass, seats, and wiring harnesses from local suppliers, creating a ripple effect from Industrial Area to River Road.

Furthermore, every vehicle assembled locally saves the country critical foreign exchange. Instead of sending the full value of a car to a foreign seller, Kenya only pays for the component kits, retaining the value of labor, energy, and profit margins within the economy. In an era where the shilling has fought hard for stability, these savings are vital for keeping the cost of living—including fuel and food imports—manageable.

“We are no longer just consumers of technology; we are becoming participants in its creation,” remarked a shift manager at the Kenya Vehicle Manufacturers (KVM) plant in Thika. With the rise of electric bus assembly in Mombasa, Kenya is positioning itself not just to assemble the past, but to manufacture the future.