NAIROBI, Kenya — Kenyans could soon buy brand-new vehicles at the same price, or even lower, than importing eight-year-old used cars, as government policy and local manufacturing reshape the country’s automotive market.
This shift is already taking shape, with Isuzu positioning Kenya on the global automotive map as the first country outside Thailand to manufacture the Isuzu MU-X model.
The milestone is being hailed as a major boost for local assembly and industrialisation.
Under Kenya’s Automotive Policy, locally assembled vehicles attract tax incentives that significantly lower prices.
As a result, the price of the Isuzu MU-X is expected to drop by 27 percent, from Sh13.5 million to Sh9.9 million, making it competitive with used imports.
“For the first time, Kenyans can access a brand-new, zero-mileage vehicle at a price they have traditionally paid for a used import,” Trade Cabinet Secretary Lee Kinyanjui said, describing the move as a deliberate effort to transition Kenya from a used-vehicle market to a brand-new vehicle market.
Further price reductions are expected through the Samurai Bond, which will finance local manufacturing of vehicle components.
By increasing local content, the government aims to lower production costs and deepen value addition within the country.
The government’s leasing programme is also playing a key role in encouraging local assembly and parts manufacturing.
Vehicles with higher locally manufactured content will enjoy enhanced tax incentives, making them more affordable for consumers while supporting the domestic industry.
The event was attended by Junichi Kubo, President of Isuzu Motors International; Rita Kavashe, Managing Director of Isuzu East Africa; Hiroshi Matsuura, Japan’s Ambassador to Kenya; and Dr Juma Mukhwana, Principal Secretary for Industry.
The developments underscore Kenya’s broader industrial strategy to attract global manufacturers, create jobs, reduce reliance on imports, and make new vehicles more accessible to ordinary Kenyans.
