The Automotive industry in Kenya is primarily involved in the assembly, retail and distribution of motor vehicles.
Kenya is currently attempting to completely build its own cars. After building its first car in the late 80's (the Nyayo Car), Kenya has a shot at the industry with Mobius Motors, which was founded in 2009.
The Nyayo Motor Corporation was established to mass-produce these cars. Five prototypes were made, named Pioneer Nyayo Cars and they attained a speed of 120 km/h. The Nyayo Motor Corporation was later renamed Numerical Machining Complex Limited, manufacturing metal parts for various local industries.
Nyayo Car, Kenya's first car
Key Players in the Kenyan Automotive Industry
Several companies have played significant roles in the automotive sector in Kenya, including:
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- Mobius Motors: Mobius Motors Kenya Limited was a vehicle re-assembler founded in 2010. The company was incorporated in the United Kingdom in 2010 and registered in Kenya in 2011. Thus, Mobius Motors was established to provide low cost cars at about KES. As of 2018, the company was in the process of building an in country manufacturing plant.
Challenges and Opportunities
The established dealers face intense competition from imported second-hand vehicles, mainly from Japan and United Arab Emirates. Another issue is that there is more demand for second-hand vehicles rather than new ones because Kenya is generally a lower middle-income country.
In the beginning of 2019, the Government of Kenya proposed to implement a National Automotive Policy which effectively would see an eventual ban on imports of second hand passenger and commercial vehicles.
Historical Overview
- 1986: Nyayo Car, Kenya's first car is built.
Mobius Motors, aiming to provide low-cost cars
Other Key Developments and Manufacturers
Here's a look at other manufacturers and significant events in Kenya's automotive history:
- Volkswagen: Volkswagen inaugurated a vehicle production facility in Kenya. The first Kenyan made Volkswagen Polo Vivo was unveiled.
- Peugeot: Peugeot started assembly of cars at Thika factory.
- Honda: Honda established a new motorcycle subsidiary in Kenya.
- Toyota: Toyota launched a $4.9m assembly plant in Kenya.
- TVS: TVS made a foray into Kenya. TVS planned to begin a motorcycle assembling plant in Kenya.
- Tata: Tata planned to set up a local bus plant.
MOI’S DREAM CAR: Nyayo pioneer project allegedly fell apart on interference from late Biwott
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