Kenya’s automotive sector is showing renewed growth as fresh investment and supportive policies drive up vehicle assembly numbers. In the first half of 2025, the country assembled 6,723 units, a 16.4 percent increase compared to the 5,778 units built during the same period last year. Monthly production has consistently surpassed the 1,000-unit mark since March, with May recording the highest output at 1,256 units before stabilizing at around 1,080 units in June.
The rebound comes after a period of slowed output, with the industry benefiting from tariff exemptions on imported parts and increased investor interest. The Kenyan government has positioned local assembly as a pillar for industrial expansion, clean energy adoption, and job creation.
A major boost has also come from Japan, which has extended a Samurai loan worth 25 billion yen, approximately 169 million dollars, to support Kenya’s automotive and energy sectors. The financing deal not only strengthens vehicle assembly capacity but also targets improvements in energy transmission, addressing losses that currently account for nearly a quarter of the country’s generated power.
These efforts align with Kenya’s long-term vision to establish itself as a leader in electric vehicle adoption in Africa. The combination of international partnerships, favorable government policies, and rising demand for sustainable transport solutions places Kenya on track to become a regional hub for automotive manufacturing and clean mobility.