Industry Players Laud Government for Revitalizing Automotive Sector

Mombasa: Automotive industry players have commended the government for introducing enabling legislation that has revitalized the sector by promoting local assembly and the manufacturing of automobiles. The review of legal and regulatory frameworks has led to a surge in locally assembled vehicles. The government has rolled out a raft of incentives to encourage local assembly, including tax exemptions on imported parts meant for assembly.

According to Kenya News Agency, the government's National Automotive Policy seeks to further support the growth of the industry. In addition, the State is considering the introduction of a Sh13 billion affordable credit financing kitty for automotive players. To regulate the importation of parts such as batteries, it has also implemented incentives and tax measures, including the Duty Remission Scheme.

Isuzu East Africa Chairperson and Managing Director, Rita Kavashe, noted that over the last ten years, local assembly has witnessed tremendous growth, with more players entering the market due to favorable legislation and regulations. This shift has resulted in a transition from a 50-50 split to about 85% local production and only 15% importation.

Kavashe spoke during a customer appreciation event in Mombasa, where Isuzu East Africa handed over nine premium locally assembled Quester UD buses worth Sh150 million to Nyamira Express Premium and Guardian Bus Company. She highlighted the government's policy advocacy around "Buy Kenya, Build Kenya," which has enhanced production capacity and created thousands of employment opportunities.

The integration of technology in the buses is set to provide customers with peace of mind, as the use of telematics will generate reports for better fleet management. Kavashe also announced that from January 2026, Isuzu East Africa will produce 100% of its vehicles for the Kenyan market in their Nairobi factory or associated facilities.

UD Trucks General Manager David Were emphasized the incorporation of advanced technology in the buses, such as the Anti-lock Braking System and robust suspension systems, to enhance safety and comfort. The buses are designed to provide a more comfortable ride for both passengers and long-distance drivers, thanks to features like air-suspended driver seats and a rigid chassis.

Nyamira Express and Guardian Coach Director Julius Mokaya expressed optimism about leveraging UD Trucks technology to enhance operational efficiency. He noted the promising fuel consumption and comfort of the buses, which are expected to support their customers during peak seasons.