The Kenyan motor industry has roared back to life, posting a stunning 19.6% growth in new vehicle sales for the 2025 financial year. The surge, driven by cheaper credit and a stabilized shilling, signals that the economy may finally be turning a corner after three years of stagnation.

Data released this morning by the Kenya Motor Industry Association (KMIA) paints a picture of resilience. Total unit sales hit 13,583 in 2025, up significantly from 11,352 in the previous year. The recovery is broad-based, with heavy commercial vehicles and passenger cars both recording double-digit gains, but one player continues to dominate the road.

Isuzu Tightens its Grip

Isuzu East Africa has once again cemented its status as the undisputed king of Kenyan roads. The assembler moved 6,494 units, accounting for nearly 48% of the entire new vehicle market. Their success is built on the back of the tireless NPR trucks and D-Max pickups—the workhorses of Kenya’s SME sector.

"Businesses are spending again," noted an Isuzu executive. "When you see trucks moving, you know the economy is moving. The demand for logistics and construction vehicles is the highest we've seen since 2022."

Why the sudden U-turn?

Two key macroeconomic factors have fueled this rebound:

• Interest Rate Cuts: The Central Bank of Kenya’s decision to slash the benchmark lending rate to 9% has unlocked affordable financing. For the average entrepreneur, the cost of a car loan has dropped from a punitive 18% to a manageable 14%, reigniting appetite for asset acquisition.
• Shilling Stability: After the volatility of 2023/24, the Kenyan Shilling has traded in a tight band around 129 to the US Dollar for over 16 months. This predictability has allowed importers and assemblers to price their units competitively, removing the "risk premium" that had inflated showroom prices.

A Barometer for 2026

New vehicle sales are often a leading indicator of economic health. If companies are buying fleets, they expect to be busy. The 20% jump suggests that the private sector is betting on growth. However, challenges remain. The taxman is still aggressive, and fuel levies remain high. But for now, the mood in the showrooms along Mombasa Road is one of cautious optimism. As engines rev up across the country, the hope is that this momentum will drive the wider economy into the fast lane.