Kenyans will soon buy brand-new vehicles at prices comparable to, or even lower than, the cost of importing eight-year-old used cars, as the government accelerates reforms aimed at transforming the country’s automotive industry.
Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui announced that the shift is already underway, citing Isuzu’s decision to assemble the MU-X model locally as a major milestone for Kenya’s manufacturing sector. The move positions Kenya as the first country outside Thailand to manufacture the Isuzu MU-X, placing the country firmly on the global automotive map.
Isuzu MU-X Price Drops 27% Through Local Assembly
According to Kinyanjui, local assembly has unlocked significant tax incentives that will cut the price of the Isuzu MU-X by 27 per cent, from KSh 13.5 million to KSh 9.9 million. The price drop means Kenyans can, for the first time, purchase a brand-new, zero-mileage vehicle at a cost traditionally associated with imported used cars.
“This is the narrative we are changing through the Automotive Policy,” Kinyanjui said, noting that the government aims to shift Kenya from a used-vehicle market to a brand-new vehicle market anchored on local manufacturing.
Samurai Bond to Further Lower Vehicle Prices
The Cabinet Secretary explained that further price reductions will come through the planned Samurai Bond, which will finance the local production of vehicle components. By supporting domestic parts manufacturing, the bond will lower production costs and reduce reliance on imported components.
Kinyanjui also highlighted the government’s vehicle leasing programme as a key driver of growth in local assembly and parts manufacturing. Under the programme, vehicles with higher local content qualify for better tax incentives, encouraging manufacturers to deepen their production footprint in Kenya.
The announcement came Monday during an event attended by senior industry and diplomatic leaders, including Isuzu Motors International President Junichi Kubo, Isuzu East Africa Managing Director Rita Kavashe, Japanese Ambassador to Kenya Hiroshi Matsuura, and Principal Secretary for Industry Dr Juma Mukhwana.
The government believes the Automotive Policy will create jobs, strengthen industrial capacity, and make new vehicles more affordable, while positioning Kenya as a regional hub for automotive manufacturing in Africa.
