Last year, the number of motor vehicles assembled in Kenya increased by 18.5%, reaching a new high of 13,692 units, driven by the expansion of new models at factories in Nairobi and Mombasa. According to data from the Kenya National Bureau of Statistics, the assembled vehicle count rose from 11,555 units the previous year, reflecting a response to government tax incentives for assemblers. Components shipped to assembly plants are exempt from a 35% vehicle import duty. Consumption taxes are set at 20%, 25%, and 35% based on the engine displacement and fuel type of internal combustion engine vehicles, which currently dominate the road. Assemblers also benefit from a lower 2.5% import declaration fee, compared to the standard rate of 3.5%. These tax incentives can reduce vehicle costs by several million shillings, enabling assemblers to sell their models at more competitive prices or achieve higher profit margins. Since 2023, Kenya CFAO Mobile has assembled Toyota Fortuners in Mombasa, lowering the SUV's price from 13.2 million shillings to 10 million shillings.
