Kenya’s vehicle assembly sector saw a significant recovery in the first half of 2025, with output increasing by 16.4% to 6,723 units, bouncing back from two years of decline. This surge is attributed to new government incentives, international financing, and the expansion of electric vehicle (EV) assembly projects.

• 6,723 units were assembled in the first half of 2025, marking a 16.4% increase from 5,778 units in H1 2024.
• The rebound is supported by new government incentives, including duty exemptions on imported parts, and $169 million in Samurai financing from Japan.
• Key developments include CFAO Motors launching local assembly of the Toyota Fortuner, Volkswagen models returning to local assembly, and new EV assembly lines from MojaEV and Spiro, alongside BasiGo's continued expansion.