By Ken Muthomi - Reporter
Kenya, June 03, 2026 - The Ministry of Trade has announced the launch of the local assembly of the iconic Toyota Hiace matatu at Kenya Vehicle Manufacturers (KVM) in Thika, as the country intensifies efforts to strengthen its manufacturing sector.
In a statement issued on Wednesday, Trade Cabinet Secretary Lee Kinyanjui said the new assembly line will help reduce the country’s reliance on imported Toyota Hiace vehicles, which have dominated Kenya’s public transport sector for more than two decades.
According to the CS, the new factory has the potential to create more than 200 job opportunities in Thika, with plans for future expansion already underway.
The local vehicle assembly initiative is also expected to create opportunities for suppliers, manufacturers, and small and medium-sized enterprises (SMEs) operating within the automotive value chain.
“For many Kenyans, the story of public transport transformation began in the 1990s when the Toyota Hiace was among the brands that replaced the then-popular ‘face me’ vans, revolutionizing comfort, reliability, and mobility across the country,” Kinyanjui said.
“This is more than the assembly of a vehicle. It is about creating jobs, strengthening local industries, building technical skills, and growing Kenya’s manufacturing capacity,” he added.
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In recent decades, Kenya has steadily built a substantial vehicle assembly industry. The country is now home to three major vehicle assembly plants, all of which have recorded increased production in recent years.
The industry is currently experiencing a resurgence driven by demand for commercial vehicles and a growing shift toward electric vehicles (EVs). In 2025 alone, local vehicle assembly reached 13,692 units, representing an 18.5 percent increase fueled by the introduction of new models.
The three major assembly plants include Kenya Vehicle Manufacturers (KVM), a partnership between DT Dobie and the government that also hosts new electric bus assembly lines; Associated Vehicle Assemblers (AVA) in Mombasa, which assembles trucks, buses, and pickups for brands such as Mitsubishi, Hyundai, and Tata; and Isuzu East Africa in Nairobi, which assembles Isuzu trucks and buses.