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]

Major retailers

Major assemblers
  • Kenya Vehicle Manufacturers (KVM) - Also Assembles for Hyundai Motor Corp and Peugeot S.A.[2]
  • General Motors East Africa (GMEA)
  • Honda Motorcycle Kenya Ltd[3][4]
  • Associated Vehicle Assemblers Ltd (AVA). (Largest Assembler in Kenya[5]) Also Assembles for Toyota (East Africa)/ Toyota Kenya Ltd (TKL)[6]
  • TVS Motors Kenya[7][8]
  • DT Dobie for Volkswagen
  • Associated Motors (AM)
  • Transafrica Motors Ltd-Mombasa (FAW & IVECO)

Future assemblers

Local automotive companies
Mobius Motors Logo

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 low-income country. Thus, Mobius Motors was established to provide low cost cars at about KES. 1,100,000 (US$11,000).[11]

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 the 7th of May 2019.[12]

Timeline of the Kenyan car industry
Nyayo Pioneer (1990)
  • 1960s - Volkswagen is assembling the Beetle in Kenya[13]
  • 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[14]
  • 2016 - Volkswagen starts assembly of Polo Vivo in Kenya in Cooperation with DT Dobie[15]

References
  1. PricewaterhouseCoopers. "PwC Kenya: Industries: Automotive". PwC.
  2. Tuesday; September 26; 2017 10:03. "Peugeot starts assembly of cars at Thika factory". Business Daily. Retrieved 2019-10-10.CS1 maint: numeric names: authors list (link)
  3. "Honda Worldwide - March 27, 2013 "Honda Establishes New Motorcycle Subsidiary in Kenya"". honda.com. Archived from the original on February 22, 2015.
  4. Honda sets up factory to make motorcycles. YouTube. 1 August 2013.
  5. "Toyota drops bid to buy AVA". businessdailyafrica.com.
  6. "Ventures Africa - Toyota Launches $4.9m Assembly Plant In Kenya". ventures-africa.com.
  7. "TVS Makes A Foray Into Kenya - Overdrive". overdrive.in.
  8. TVS to begin motorcycle assembling plant in Kenya. YouTube. 30 July 2013.
  9. Nyabiage, Jevans (2008-05-15). "Kenya: Tata to Set Up Local Bus Plant". The Nation (Nairobi). Retrieved 2017-08-23.
  10. http://www.the-star.co.ke/news/article-113038/tata-draws-plans-kenyan-vehicle-market%5B%5D
  11. Wednesday; July 26; 2017 20:40. "New model of Kenyan made vehicle Mobius to cost Sh1.3m". Business Daily. Retrieved 2019-10-10.CS1 maint: numeric names: authors list (link)
  12. "Kenya Used Car Importation Age Changes Leading to Limitations of Car Imports into Kenya". Auto Kenya Ltd. 2019-10-24. Retrieved 2019-10-23.
  13. "Volkswagen inaugurates vehicle production facility in Kenya". Retrieved 2017-01-10.
  14. "More than half of new cars assembled in Kenya on lower taxes". businessdailyafrica.com.
  15. "First Kenyan made Volkswagen Polo Vivo unveiled". Archived from the original on 2017-01-10. Retrieved 2017-01-10.
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