Kenya's automotive industry, currently contributing a mere 6 percent to the manufacturing sector's output, needs bold policy interventions to achieve the government's target of 15 percent GDP contribution by next year. The industry faces challenges with 83 percent of annual vehicle registrations being used, imported vehicles, highlighting a significant opportunity for local assembly to drive industrial growth and job creation.

• The industrial manufacturing sector contributes only 7.6 percent of Kenya’s GDP, falling short of the 15 percent target.
• Completely Knocked Down (CKD) new vehicle sales increased from 48.2 percent in 2015 to nearly 90 percent in 2025, driven by the "Buy Kenya, Build Kenya" initiative.
• Key proposals include finalizing the National Automotive Bill, generating local demand for locally produced used vehicles through expanded government leasing programs, and differentiating incentives for Level three assembly operations.
• The Japanese government is providing a ¥15 billion (approximately Sh13.1 billion) Samurai bond facility to support the automotive ecosystem.
• The author, Chair of the Board and Managing Director of Isuzu East Africa, emphasizes predictable policies and adherence to public procurement laws, including implementing the Local Content Bill 2025 requiring 60 percent local sourcing for foreign-funded projects.