NAIROBI, Kenya – Kenya’s new vehicle market has recorded its strongest performance on record, with sales in the first eleven months of 2025 already surpassing total purchases made in the whole of last year.
Industry data shows Kenyans bought 12,427 new vehicles between January and November 2025 — an increase of 2,267 units compared with the same period in 2024, when 10,160 vehicles were sold.
According to figures from the Kenya Motor Industry Association (KMIA), the surge represents a 9.5 per cent year-on-year growth and signals renewed confidence among businesses, buoyed by lower borrowing costs and improved cash flow.
The strong showing means sales have already overtaken the full-year 2024 total of 11,352 units, underlining the pace of recovery in key sectors such as transport, construction and logistics.
Isuzu East Africa dominated the market, selling 5,938 units during the period, cementing its position as the country’s leading commercial vehicle brand.
CFAO Motors — which represents Toyota, Mercedes-Benz, Volkswagen and Hino — followed with 4,005 units, while Simba Corporation sold 1,030 vehicles.
Earlier industry data had already pointed to a robust year. By the end of September, dealers had sold 10,101 vehicles, a 24 per cent jump from 8,165 units recorded over the same period in 2024.
Monthly sales remained consistently above 1,000 units, with September alone recording 1,184 sales compared to 1,010 a year earlier.
Commercial vehicles continued to anchor demand. Trucks were the most purchased units at 4,113, reflecting sustained activity in transport and construction.
Pick-ups followed at 2,358 units, while medium-sized buses (21–40 seats) accounted for 857 units and large buses 213, pointing to steady demand in the public transport sector, including matatus.
Market leaders retained their dominance through the nine months to September, with Isuzu controlling 48 per cent of total industry sales after delivering 4,830 units.
CFAO Motors followed with a 32 per cent market share from 3,268 units sold, while Simba Corporation moved 881 vehicles.
Industry players attribute the growth largely to easing monetary conditions. The Central Bank of Kenya (CBK) has cut its benchmark lending rate eight times, from 13 per cent in June 2024 to 9.25 per cent, triggering a decline in commercial lending rates.
Average lending rates dropped to 15.07 per cent in September 2025 from 16.91 per cent a year earlier.
CBK Governor Kamau Thugge said the broader economy has shown resilience, with real GDP expanding by five per cent in the second quarter of 2025, up from 4.6 per cent during the same period last year.
The growth, he noted, was driven by a rebound in industrial activity, stable agricultural output, and strong performance in services — particularly transport and storage, finance and insurance, ICT, and wholesale and retail trade.
Leading economic indicators suggest the momentum could carry into 2026. Non-performing loans declined to 17.1 per cent in September from 17.6 per cent in June, with notable improvements in construction, real estate, tourism, hospitality and trade.
The CBK projects economic growth of 5.2 per cent in 2025 and 5.5 per cent in 2026, supported by recovering industrial activity, agriculture and services, though risks remain from global trade policy uncertainty and geopolitical tensions.
The regulator says cheaper financing, healthier cash flows and proactive engagement by dealers have helped restore confidence, enabling firms to expand operations and replace ageing vehicle fleets.
