Locally assembled vehicle sales rise 32% as Kenya’s motor vehicle market recovers

Sales of locally assembled vehicles in Kenya increased by 32 percent in the first half of 2026, signalling a recovery in the country’s motor vehicle market amid improving economic conditions.

According to the Kenya Motor Industry Association (KMIA), vehicle sales rose to 1,651 units in June, up from 1,120 units recorded in January.

Overall, 7,819 locally assembled vehicles were sold between January and June 2026.

KMIA attributed the improved performance to a more stable economic environment, supported by a stronger shilling, lower borrowing costs and reduced fuel prices.

The association noted that the decline in the Central Bank Rate to 8.75 percent helped lower interest rates, making vehicle financing more affordable for businesses and consumers.

It also said increased activity in key sectors of the economy boosted demand for commercial and passenger vehicles.

“These gains were driven by a resilient economic environment characterized by stable exchange rates, easing interest rates following the reduction of the Central Bank Rate to 8.75 percent, and lower fuel prices,” KMIA said.

The association added that government-backed infrastructure projects, including the Affordable Housing Programme, the planned extension of the Standard Gauge Railway (SGR) to Malaba, ongoing road maintenance works and favourable weather conditions supporting agriculture also contributed to higher vehicle sales.

Isuzu East Africa remained the country’s leading vehicle assembler and dealer during the review period, selling 3,990 units and accounting for 51.03 percent of the market.

CFAO Mobility ranked second after selling 2,381 units, followed by Simba Corporation with 614 units, Tata Africa Holdings with 391 units, Scania East Africa with 110 units, and Mobikey Truck and Bus with 103 units.