By Regan Oluoch
The decision to assemble Toyota Hiace vehicles locally marks a significant development for Kenya’s manufacturing ambitions, with industry players expected to benefit from new opportunities across the automotive value chain.
The assembly line, launched at the Kenya Vehicle Manufacturers (KVM) plant in Thika, is expected to increase local vehicle production while strengthening Kenya’s standing as an emerging automotive centre in East Africa.
KVM currently assembles vehicles for several global brands, including Volkswagen, Tata, Mercedes-Benz and Sinotruk, producing both passenger vehicles and heavy commercial trucks for the local and regional markets.
Speaking during the event, Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said the project demonstrates the country’s commitment to expanding local manufacturing and reducing reliance on imported products.
He observed that the Toyota Hiace has become an integral part of Kenya’s transport and logistics network, making its local assembly a significant milestone for the sector.
“The Toyota Hiace has become part of our everyday life and economic story. Today, that story takes a new turn as it will now be assembled in Kenya,” he said.
“This milestone reflects the progress we are making in strengthening our automotive industry and deepening local value addition,” he added.
According to the Cabinet Secretary, the launch reflects the success of Kenya’s engagement with Japan in promoting industrial development.
The partnership has brought together CFAO Mobility Kenya and Toyota, a move that he said is helping transform the automotive space.
Beyond vehicle assembly, Kinyanjui said the initiative is expected to create opportunities for local enterprises involved in the production of automotive components.
These include manufacturers of seats, carpets, exhaust systems, and interior fittings.
The manufacturing of these automotive products will create more employment opportunities for those in the automotive industry space.
He noted that efforts are being made to ensure small and medium-sized enterprises benefit from the growing automotive value chain, adding that Kenya once had the capacity to produce a large share of vehicle parts locally.
The project has also contributed to improvements at KVM and the establishment of financing arrangements aimed at supporting businesses operating within the automotive manufacturing sector.
CFAO Mobility Kenya has injected Sh2.6 billion into KVM’s revival effort, creating more employment opportunities.
Speaking during the launch, CFAO Mobility Kenya Managing Director Arvinder Reel described the investment as a landmark achievement for Kenya’s manufacturing sector and a demonstration of confidence in the country’s industrial capabilities.
“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.
The investment is expected to generate a substantial economic impact, creating over 200 direct jobs and more than 600 indirect jobs across the automotive value chain.
The company expects to assemble approximately 600 Toyota Hiace units in the first year of production as it seeks to expand its market share in public transport.
Industry stakeholders view the move as an important step towards strengthening local production and expanding value addition within Kenya’s economy.
