Kenya’s automotive manufacturing sector has received a major boost following the commissioning of a new Toyota Hiace assembly line at the Kenya Vehicle Manufacturers (KVM) facility in Thika.
The new line forms part of an extensive plant modernization and capacity expansion initiative supported by a KSh2.3 billion investment by CFAO Mobility Kenya. The investment is aimed at increasing local vehicle production, advancing industrial development, and strengthening Kenya’s automotive value chain.
According to KVM, the project reflects a sustained commitment to local manufacturing by promoting technology transfer, enhancing technical expertise, creating employment opportunities, and building a stronger skills base within the industry.
The Toyota Hiace remains one of Kenya’s most widely utilized vehicles, serving key sectors such as public transport, tourism, logistics, and commercial passenger services. Expanding local assembly capacity for the model is expected to improve production efficiency while supporting growing market demand.
The development aligns with ongoing government efforts to encourage domestic vehicle assembly through policies and incentives designed to reduce dependence on fully imported vehicles and increase local value addition.
KVM currently assembles vehicles for several international brands, including Volkswagen, Tata Motors, Mercedes-Benz, and Sinotruk, producing a range of passenger vehicles, buses, and commercial trucks for both domestic and regional markets.
Industry stakeholders view the expansion as a positive step toward deepening Kenya’s manufacturing capabilities, creating skilled jobs, and positioning the country as a leading automotive production hub in East Africa.
