New Deal to See Kenya Assemble Brand-New Vehicles Cheaper Than Used Imports

Kenyans could soon buy brand-new vehicles assembled locally at prices comparable to, or even lower than, imported used cars after a new manufacturing deal between the government and a Japanese automaker.

According to Trade and Investments Cabinet Secretary Lee Kinyanjui, the agreement will make Kenya the first country outside Asia to manufacture one of the company’s models, significantly boosting local automotive production.

Kinyanjui announced on Monday, February 2, that the locally assembled vehicles will retail at prices rivaling those of eight-year-old imported units, marking a major shift from Kenya’s reliance on second-hand imports.

“Soon, Kenyans will be able to purchase brand-new vehicles at the same price, or even lower, than importing an eight-year-old used vehicle,” Kinyanjui said in a statement shared on his social media platforms.

“For the first time, Kenyans can access a brand-new, zero-mileage vehicle at a price they have traditionally paid for a used import,” he added.

Under the agreement, the model will sell at about Ksh 9.9 million, a reduction of twenty-seven per cent from its previous price of Ksh 13.5 million.

According to the Cabinet Secretary, the price drop is driven by local assembly and improved financing arrangements aimed at lowering production costs.

He added that some vehicle components will now be manufactured locally through sovereign-backed financing, a move expected to further reduce costs and strengthen Kenya’s industrial base.

Kinyanjui also noted that the government’s vehicle leasing programme is encouraging higher local content, with manufacturers sourcing more parts locally set to benefit from enhanced tax incentives.

In addition, the government is scaling up electric vehicle assembly to cut carbon emissions and reduce reliance on imported fossil fuels. Recent data shows Kenya now has more than 9,000 electric vehicles, up from about 2,000 in 2023.

Kenya has a long history in vehicle assembly and previously developed a locally grown automotive brand, although the company was placed under liquidation in 2024.

The latest deal is widely seen as a key step toward reviving the sector and positioning Kenya as a regional automotive manufacturing hub.