Vehicle assembly in Kenya rebounds after three-year slump
Data from the Kenya National Bureau of Statistics (KNBS) shows assemblers produced 6,723 vehicles between January and June, up from 5,778 in the same period in 2024.
Kenya’s motor vehicle assembly industry posted its strongest growth in years after breaking a three-year decline, with the number of units assembled rising by 16.4 percent in the first half of 2025 compared to the same period last year.
Data from the Kenya National Bureau of Statistics (KNBS) shows assemblers produced 6,723 vehicles between January and June, up from 5,778 in the same period in 2024.
This marks a reversal of the downward trend seen since 2022, when production dropped from 7,450 units in the first half of that year to 6,682 in 2023.
The rebound mirrors an increase in sales of new vehicles, which surged by 25.05 percent to 6,360 units during the six months to June, compared to 5,086 sold a year earlier.
The Kenya Motor Industry Association (KMI) noted that this was the fastest growth in sales recorded in four years.
Isuzu East Africa strengthened its market dominance, increasing its share to 48.4 percent from 47.9 percent last year.
Locally assembled vehicles, brought in as completely-knocked-down kits, accounted for more than 80 percent of new car sales during the review period.
The rise in demand has been linked to easing borrowing costs, a stabilised shilling, and more predictable inflation, factors that have improved financing conditions for buyers and supported the recovery in assembly volumes.
