The Kenyan government’s recent legal and regulatory reforms have revitalized the local automotive assembly industry, attracting increased investments and earning praise from key industry players.
For years, the government has introduced various incentives to encourage vehicle assembly within the country, including tax exemptions on imported vehicle parts used for local assembly. These measures have significantly boosted the production of locally assembled vehicles.
Speaking at the launch of UD Trucks in Kenya, held at the new UD Trucks service facility in Jomvu, Mombasa, Isuzu East Africa’s Board Chairman and Managing Director, Rita Kavashe, highlighted the transformative impact of these regulatory changes.
“In 2020, the split between locally produced and imported vehicles was almost equal. Thanks to the new regulations, around 80% of vehicles are now locally assembled, with only 20% being imported. This trend will continue to improve due to the government’s stable incentive programs and regulatory reviews,” said Kavashe.
The reintroduction of UD Trucks to the Kenyan market represents a significant milestone. The trucks, sold by Isuzu East Africa, are assembled locally at Kenya Vehicle Manufacturers (KVM) in Thika. This collaboration is expected to drive job creation, foster technology transfer, and support the government’s “Buy Kenya, Build Kenya” initiative.
Kavashe emphasized the local assembly’s broader impact on the economy: “Unlike second-hand or fully imported vehicles, assembling locally creates employment opportunities and strengthens the country’s manufacturing base, positioning Kenya as a hub for the larger East African region.”
She also noted the strategic importance of UD Trucks’ re-entry: “Kenya, as the logistics hub for the region, demands durable, reliable products that offer value for money. Leveraging Isuzu’s heritage of quality, there is immense potential to expand within Kenya and across East Africa, benefiting from the country’s port facilities, road infrastructure, and regional trading blocs.”
Mourad Hedna, President of UD Trucks for the Middle East, East, and North Africa Region, underscored the growing importance of logistics in Kenya’s economy. “Logistics is the backbone of society, and with population growth and an expanding middle class, the demand for transportation will only increase. UD Trucks aims to play a key role in supporting Kenya’s prosperity,” he stated. Hedna also highlighted the trucks’ modern driveline, quality, and reliability.
Tetsuya Ikemoto, Director of the Board and Managing Executive Officer at Isuzu Motors Limited, outlined the alliance’s long-term vision: “We aim to provide customers in East Africa with innovative vehicle technologies tailored to meet their logistics needs.”
Koichi Ito, Chairman of UD Trucks Corporation, echoed these sentiments, emphasizing the partnership’s focus on delivering top-notch products and comprehensive aftersales support.
The collaboration between Isuzu East Africa and UD Trucks not only underscores the success of Kenya’s regulatory reforms but also highlights the nation’s potential to become a leading manufacturing hub in the region.
