Kenya's automotive manufacturing sector received a major boost on Wednesday, June 3 after Kenya Vehicle Manufacturers (KVM) commissioned a new Toyota Hiace assembly line at its Thika plant, backed by a Ksh2.3 billion investment from CFAO Mobility Kenya.
The launch marks a significant expansion of local vehicle assembly capacity and is expected to create more than 200 direct jobs and over 600 indirect jobs across the automotive value chain.
The Toyota Hiace, one of the most widely used commercial vehicles in Kenya, serves a broad customer base including public transport operators, schools, tour companies, logistics firms, businesses and government institutions.
The commissioning ceremony was presided over by Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui and attended by officials from Toyota Motor Corporation, Toyota Tsusho Corporation, CFAO Group and industry stakeholders.
Speaking during the launch, CFAO Mobility Kenya Managing Director Arvinder Reel said the project signaled a deeper commitment to local manufacturing and industrial development.
"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. For over 50 years, Toyota has been part of Kenya's mobility story. Today, we take that commitment a step further by expanding local manufacturing capacity, creating skilled employment opportunities, transferring advanced production expertise, and supporting the growth of local supplier networks," Reel said.
He added that local assembly would help strengthen Kenya's automotive value chain while ensuring vehicles meet global Toyota standards.
"By assembling the Toyota Hiace locally, we are strengthening the domestic automotive value chain while delivering world-class vehicles built to global Toyota standards and tailored for Kenyan operating conditions. This project demonstrates what can be achieved through strong partnerships between government, industry, and global manufacturers."
According to the company, the investment forms part of a wider modernization programme at the Thika facility, which has included upgrades to production infrastructure, assembly technologies, logistics systems and environmental compliance measures.
As part of the initiative, Kenyan engineers and assembly specialists underwent technical training programmes in South Africa and Cambodia to acquire advanced vehicle assembly and quality management skills.
The company also said it is working with local component manufacturers to increase local content in assembled vehicles and support the growth of domestic automotive supply chains.
The first phase of the modernization programme has now been completed, with KVM targeting the assembly of approximately 600 Toyota Hiace units in its first year of production. The company expects output to increase gradually depending on market demand and government support for locally assembled vehicles.
The locally assembled Hiace vehicles will be sold with a manufacturer warranty of five years or 150,000 kilometres and will include safety features such as dual airbags, anti-lock braking systems (ABS) and reinforced impact protection structures.
The launch comes as the government continues to push its "Buy Kenya, Build Kenya" agenda, which seeks to boost local manufacturing, create jobs and reduce reliance on imported products.
Industry players have increasingly argued that expanding local vehicle assembly could help position Kenya as a regional automotive hub while creating opportunities for technology transfer and skills development in the manufacturing sector.
