The Automotive industry in Kenya is primarily involved in the assembly, retail and distribution of motor vehicles. There are a number of motor vehicle dealers operating in the country.[1]
Kenya is currently attempting to completely build its own cars. After building its first car in the late 80's (the Nyayo Car), Kenya has a shot at the industry with Mobius Motors, which was founded in 2009. with KIBO Africa Limited, motorcycles have been rolling out from this local manufacturer.
Challenges[]
The established dealers face intense competition from imported second-hand vehicles, mainly from Japan and United Arab Emirates. Another issue is that there is more demand for second-hand vehicles rather than new ones because Kenya is generally a lower middle-income country. Thus, Mobius Motors was established to provide low cost cars at about KES. 1,100,000 (US$11,000).[2]
In the beginning of 2019, the Government of Kenya proposed to implement a National Automotive Policy which effectively would see an eventual ban on imports of second hand passenger and commercial vehicles. However, this was faced with stiff resistance from the used car industry with the government eventually having to suspend their push to change the regulations on 7 May 2019.[3]
Timeline of the Kenyan car industry[]
Nyayo Pioneer (1990)
1960s – Volkswagen is assembling the Beetle in Kenya[4]
1976 – First Kenyan Assembled car by Kenya Vehicle Manufacturerers
1977 – First Assembled car by Associated Vehicle Assemblers Ltd.
1986 – Nyayo Car, Kenya's first car is built. The car achieves 120 km/h (75 mph)
