Cabinet Secretary for Investment, Trade and Industry Lee Kinyanjui has said Kenya is on the brink of a major shift in its automotive market, with locally assembled brand-new vehicles set to cost the same as, or even less than, imported used cars.
In a statement shared on X on Monday, February 2, 2026, the CS outlined how government policy, tax incentives, and local manufacturing are coming together to lower vehicle prices for Kenyan buyers. Kinyanjui said the transformation is already underway.
“Soon, Kenyans will be able to purchase brand-new vehicles at the same price, or even lower, than importing an eight-year-old used vehicle,” he wrote.
He pointed to the role of local manufacturing in driving this shift, singling out Isuzu as a key player in putting Kenya on the global automotive map.
“This shift is already taking shape, and we congratulate Isuzu for putting Kenya on the global map as the first country to manufacture the MU-X model outside Thailand,” Kinyanjui wrote.
Explaining how local assembly directly affects prices, the CS highlighted the impact of tax incentives for manufacturers that assemble vehicles within the country.
“With local assembly attracting tax incentives, the price of the MU-X will drop by 27 per cent, from Ksh 13.5 million to Ksh 9.9 million,” part of his statement reads.
Kinyanjui said the price reduction marks a turning point for Kenyan consumers who have long relied on second-hand imports due to the high costs of new vehicles.
“For the first time, Kenyans can access a brand-new, zero-mileage vehicle at a price they have traditionally paid for a used import,” he wrote.
He added that the changes are part of a broader government strategy to reshape the country’s automotive market through policy reforms.
“This is the narrative we are changing through the Automotive Policy—moving Kenya from a used-vehicle market to a brand-new vehicle market,” he stated.
Looking ahead, the CS noted that financing tools are also being put in place to support local manufacturing of vehicle parts, which he said will further lower costs over time.
“The Samurai Bond, which will finance local manufacturing of vehicle components, will further reduce vehicle prices,” he stated
He also explained how government procurement is being used to support local industry and encourage higher local content in vehicle production.
“Also, the government’s leasing programme is encouraging local assembly and parts manufacturing, with vehicles that have higher local content enjoying better tax incentives,” he wrote.
The announcement was made in the presence of key industry and diplomatic figures, underscoring the importance of partnerships in driving Kenya’s industrial growth.
“Present were Junichi Kubo, President, Isuzu Motors International; Rita Kavashe, Managing Director, Isuzu East Africa; Hiroshi Matsuura, Ambassador of Japan to Kenya; and Juma Mukhwana, Principal Secretary, Industry,” Kinyanjui wrote.
K.K.
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