In a move set to revitalize the country’s industrial landscape, Kenya Vehicle Manufacturers (KVM) has commissioned a Toyota Hiace production line at its Thika facility signaling a major step forward for domestic automotive manufacturing.
The production line is part of a larger modernization strategy funded by a Sh2.3 billion capital injection from CFAO Mobility Kenya. The investment is geared toward boosting local manufacturing capacity and accelerating Kenya’s industrialization goals.
According to Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui who was present during the launch on Friday, the investment is set to transform the local automotive industry by driving technology transfer, creating new jobs, and upgrading local skills.
“As a government, we are dedicated to the long-term expansion of our industrial base. By supporting this project, we are actively pushing for enhanced local production, skills transfer, and robust job creation that will move Kenya forward.” Noted the CS.
On his part, CFAO Mobility Kenya CEO Arvinder Reel noted that the plant is expected to assemble roughly six hundred Toyota Hiace units within its first year and will continue to scale up as demand grows.
“The launch of the Toyota Hiace assembly line at KVM represents more than the introduction of a new production line, it is an investment in Kenya’s industrial future. By assembling the Toyota Hiace locally, we are strengthening the domestic automotive value chain while delivering world class vehicles built to global Toyota standards.” He explained.
The Toyota Hiace remains one of Kenya’s most popular vehicles for passenger and commercial use, serving as the backbone for the nation’s public transit, tourism, and logistics industries. The project is slated to create over two hundred direct jobs and more than six hundred indirect jobs across the local automotive supply chain.
The initiative is part of a strategic government push to revitalize local automotive manufacturing. By offering tax and production incentives, Kenya aims to curb its heavy reliance on foreign car imports and significantly boost domestic value creation.
Beyond Toyota, KVM already boasts a diverse portfolio, assembling vehicles for major global brands like Volkswagen, Tata, Mercedes-Benz, and Sinotruk. The facility in Thika manufactures both passenger cars and heavy-duty commercial trucks supplying both Kenyan and regional markets.
by Hellen Lunalo
