The government has introduced incentives, including tax exemptions on imported vehicle parts, to promote local assembly.
At the customer launch of UD Trucks in Kenya, Isuzu East Africa Board Chair and Managing Director, Rita Kavashe, highlighted that the overhaul of the taxation system has brought about a complete transformation in the vehicle assembly industry.
Kavashe explained that the new regulations will significantly alter the balance between locally produced and imported vehicles, with a shift toward 80% locally assembled vehicles and 20% imports.
“Thanks to this new regulation, about 80% of vehicles will now be produced locally, with only 20% coming in as imports. This shift will be significant due to the strong incentive program, the revision of assembly regulations, and their stability,” Kavashe stated.
The UD trucks re-entering the Kenyan market will be sold by ISUZU East Africa and assembled locally at the Kenya Vehicle Manufacturers (KVM) plant in Thika.
This collaboration with UD Trucks will foster synergies through technology transfer, promote job creation, and support the Buy Kenya, Build Kenya policy.
“We know there are other players who import vehicles directly, including second-hand ones, but by assembling locally, we are creating job opportunities and promoting manufacturing within Kenya for the larger East African region,” Kavashe said.
Isuzu East Africa Board Chair and MD Rita Kavashe.
The re-entry of UD Trucks into Kenya is significant, as the country serves as the logistics hub for the region.
Customers are increasingly seeking durable products, value for money, and partners who can support their business growth.
