Simba Corporation’s vehicle assembly subsidiary, Associated Vehicle Assemblers (AVA), plans to invest Sh1 billion in a dedicated electric vehicle (EV) assembly line at its Mombasa plant as it seeks to capitalize on growing demand for locally assembled electric vehicles.
The investment will support the installation of specialized EV assembly equipment, modifications to the factory layout, and the training and certification of technical personnel, according to the company.
AVA told Business Daily that it will fully fund and develop the assembly line as part of its strategy to strengthen Kenya’s emerging electric mobility sector.
“Associated Vehicle Assemblers, part of the Simba Corp portfolio, is committing an estimated Sh1 billion to a dedicated electric-vehicle assembly line, with 60 trained technicians already on the floor,” the company told Business Daily.
The Mombasa-based assembler currently operates production lines for 23 internal combustion engine (ICE) and electric vehicle brands, including passenger cars, buses, trucks and three-wheelers.
The planned investment comes amid growing efforts by both the private sector and government to expand local vehicle manufacturing and accelerate the adoption of cleaner transport technologies.
Industry players have increasingly turned to local assembly as a way of reducing vehicle import costs, creating jobs and promoting technology transfer.
The announcement follows the recent launch of local assembly of the Toyota Hiace matatu at the Kenya Vehicle Manufacturers (KVM) plant in Thika, a project that the government has described as a major milestone in Kenya’s industrialization agenda.
Speaking during the launch, Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said local assembly of the popular public service vehicle marked a significant step in strengthening the country’s manufacturing sector.
“Today, we marked a major milestone in our industrial journey with the launch of the local assembly of the Toyota Hiace matatu at Kenya Vehicle Manufacturers in Thika,” Kinyanjui said.
He noted that the initiative goes beyond vehicle production and is expected to create employment opportunities, strengthen local industries, enhance technical skills and expand Kenya’s manufacturing capacity.
According to the Cabinet Secretary, KVM has already created more than 200 jobs, with planned expansion expected to generate additional employment opportunities, particularly for young people.
“I am encouraged that KVM has already created employment opportunities for more than 200 people, with plans for expansion expected to create even more jobs for our youth,” he said.
Kinyanjui added that increased local assembly would stimulate demand for locally manufactured components, creating opportunities for suppliers, manufacturers and small and medium-sized enterprises (SMEs) to participate in the automotive value chain.
“We will continue to position Kenya as a competitive automotive manufacturing hub to drive industrial growth and job creation,” he said.
The Toyota Hiace remains one of the most widely used commercial vehicles in Kenya and across East Africa, serving as a key mode of public transport and a preferred vehicle for tourism and business transport due to its reliability and durability.
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