Kenya in Deal to Lower Cost of Cars
The govt is seeking ways to lower cost of cars amid plans to change how customs duty on imported second-hand cars is calculated...
✨ Key Highlights
Kenya and Germany have renewed a cooperation agreement aimed at boosting local vehicle production and affordability. The focus is on increasing local assembly to lower costs and foster economic development within Kenya's automotive sector.
- The agreement was highlighted by Germany’s Deputy Ambassador to Kenya and Trade Counsellor, Alexander Fierley, during a visit to the Kenya Vehicle Manufacturers (KVM) facility in Thika on Thursday, August 21.
- CFAO Mobility Kenya is supporting KVM in resuming local assembly of Volkswagen brands like the Touareg, Tiguan, and T-Cross using a Completely Knocked Down (CKD) arrangement.
- The partnership aims to reduce vehicle costs by lowering import-related expenses and promoting local labor, supporting local suppliers, and creating job opportunities.
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Kenya Secures Financing and Agreements with Japan and Germany to Boost Local Vehicle Assembly - August 2025
Kenya has entered into agreements to support its domestic automotive sector. Japan has pledged up to Sh22 billion (25 billion yen) in Samurai Financing to boost the local vehicle assembly and parts manufacturing industry. Similarly, Kenya and Germany have renewed a cooperation agreement aimed at increasing local vehicle production and affordability. This focus on local industrialization was echoed by President William Ruto at the TICAD conference in Japan, where he urged Africa to add value to its products to foster local wealth and correct global trade imbalances.
