Kenya Vehicle Manufacturers (KVM) has officially launched a new Toyota Hiace assembly line at its Thika plant. The development is part of a wider modernization and expansion programme backed by a KSh 2.3 billion investment from CFAO Mobility Kenya in KVM.
For decades, the Toyota Hiace has remained a trusted commercial vehicle across Kenya. It serves businesses, schools, institutions, tour operators, logistics firms, and the public transport sector, making it a key part of daily mobility and commerce.
The local assembly marks a significant milestone in strengthening Kenya’s automotive sector. It also increases local value addition and supports the growth of a more robust manufacturing ecosystem.
Government Emphasizes Jobs, Skills, and Industrial Growth
Cabinet Secretary for Investments, Trade and Industry, Kinyanjui, presided over the commissioning ceremony. He noted that the project goes beyond vehicle assembly and focuses on broader economic transformation.
He emphasized that the initiative will create jobs, strengthen local industries, build technical skills, and expand Kenya’s manufacturing capacity.
“I am encouraged that KVM has already created employment opportunities for more than 200 people, with plans for expansion expected to create even more jobs for our youth. Local vehicle assembly also creates demand for locally produced components, opening opportunities for suppliers, manufacturers, and SMEs to participate in the automotive value chain,” Kinyanjui said.
CFAO Mobility Highlights Industrial Confidence and Value Chain Growth
CFAO Mobility Kenya Managing Director, Arvinder Reel, described the investment as a major milestone for Kenya’s manufacturing sector. He said it reflects strong confidence in the country’s industrial potential.
Reel explained that Toyota has been part of Kenya’s mobility journey for over 50 years. He noted that this next step deepens that commitment through expanded local production, job creation, skills transfer, and supplier development.
He further stated that assembling the Toyota Hiace locally strengthens Kenya’s automotive value chain while ensuring the delivery of vehicles that meet global Toyota standards and local operational needs.
Economic Impact, Skills Development, and Local Partnerships
The investment is expected to generate significant economic benefits. It will create over 200 direct jobs and more than 600 indirect jobs across the automotive value chain.
KVM and its partners have also invested in technical training and knowledge transfer. Kenyan engineers and assembly specialists have undergone advanced training programmes in South Africa and Cambodia to gain global best practices in vehicle assembly and quality management.
In addition, the company continues to collaborate with local component manufacturers. This approach increases local content participation and supports the development of competitive automotive supply chains within Kenya.
Ownership Structure of Kenya Vehicle Manufacturers
Kenya Vehicle Manufacturers (KVM), based in Thika, is now majority owned by CFAO Motors Kenya Limited. CFAO acquired a 98% stake in July 2024, following approval by the Competition Authority of Kenya.
CFAO Motors is a subsidiary of Toyota Tsusho Corporation, placing KVM within the broader Toyota Group. Prior to the acquisition, ownership included the Government of Kenya, CMC Holdings, and CFAO Motors.
Also Read:
KVM secures $3 million in funding for electric buses expansion
Why Africa Must Accelerate Local Vehicle Production
Renault trucks opens Assembly Plant in Thika
How CFAO is Shaping the Future of Mobility in Nigeria
