KVM Launches Toyota Hiace Assembly Line in Thika to Boost Local Manufacturing

News Updated: 10 June 2026 12:28 EAT

Kenya Vehicle Manufacturers (KVM) has officially commenced the local assembly of the Toyota Hiace at its Thika facility, marking a major milestone in Kenya’s automotive manufacturing industry.

The new assembly line forms part of an extensive modernization and expansion initiative supported by a Sh2.3 billion investment from CFAO Mobility Kenya. The project is designed to increase domestic vehicle production, strengthen industrial development, and support the country's broader manufacturing agenda.

According to KVM, the investment will contribute to the transfer of automotive technology, create employment opportunities, and enhance the technical skills of Kenyan workers within the sector.

“The project underscores a long-term commitment to local manufacturing, technology transfer, skills development and job creation while supporting Kenya’s industrial growth agenda,” the company said.

The Toyota Hiace remains one of the most widely used vehicles in Kenya, serving key sectors such as public transport, tourism, logistics, and commercial operations. Its local assembly is expected to increase value addition within the country while reducing dependence on fully imported units.

The development aligns with government efforts to promote local vehicle assembly through policies and incentives aimed at strengthening domestic manufacturing and encouraging industrial investment.

KVM currently assembles a range of vehicles for international brands including Volkswagen, Tata, Mercedes-Benz, and Sinotruk, producing both passenger vehicles and heavy commercial trucks for local and regional markets.

Industry stakeholders believe the expansion of local vehicle assembly will not only create more jobs but also enhance Kenya’s manufacturing capabilities and reinforce its position as a growing automotive production hub in East Africa.