By Magdalene Wanja - Reporter
Kenya, 2 February 2026 - The Kenyan government plans to stabilise vehicle prices amid rising inflation received a boost on Monday following the announcement of new partnerships in the automotive sector.
Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui revealed a major shift in Kenya’s automotive industry, saying Kenyans will soon be able to buy brand-new vehicles at prices equal to, or even lower than, those of imported used cars.
“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,” said the CS.
Speaking during the launch of the locally assembled Isuzu MU-X, Kinyanjui congratulated Isuzu for making Kenya the first country outside Thailand to manufacture the model, a move he said underscores the country’s growing capacity in vehicle assembly and manufacturing.
“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,” said Kinyanjui.
With local assembly attracting tax incentives, the price of the MU-X has dropped by 27 percent, from Sh 13.5 million to Sh 9.9 million.
“For the first time, Kenyans can access a brand-new, zero-mileage vehicle at a price they have traditionally paid for a used import. This is the narrative we are changing through the Automotive Policy, moving Kenya from a used-vehicle market to a brand-new vehicle market,” Kinyanjui emphasised.
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The Cabinet Secretary highlighted the role of the Samurai Bond, which will finance local manufacturing of vehicle components, further reducing prices.
“The Samurai Bond will strengthen our local manufacturing base, ensuring that vehicle prices continue to drop as we increase local content,” he said.
He also pointed to the government’s leasing programme, which encourages local assembly and parts manufacturing. Vehicles with higher local content will enjoy better tax incentives, creating a competitive environment for manufacturers.
The event was attended by key industry stakeholders, including:
- Mr Junichi Kubo, President, Isuzu Motors International
- Rita Kavashe, Managing Director, Isuzu East Africa
- H.E. Hiroshi Matsuura, Ambassador of Japan to Kenya
- Dr Juma Mukhwana, Principal Secretary, Industry
“We are determined to make Kenya a hub for brand-new vehicles in Africa. This is about dignity for our consumers, jobs for our youth, and competitiveness for our economy,” he added.
