Kenya Vehicle Manufacturers (KVM) has launched a new Toyota Hiace assembly line at its Thika plant, marking a significant boost for the country’s automotive manufacturing sector.

The new production line is part of a wider modernization and expansion programme backed by a Sh2.3 billion investment from CFAO Mobility Kenya, aimed at increasing local vehicle production capacity and supporting industrial growth.

KVM said the investment is expected to enhance technology transfer, create employment opportunities and strengthen local skills development within the automotive industry.

“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 is widely used in Kenya’s public transport, tourism and commercial sectors, making it one of the country’s most popular passenger and business vehicles.

The move comes as the government continues to promote local vehicle assembly through incentives designed to reduce reliance on fully imported vehicles and increase value addition within the country.

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KVM currently assembles vehicles for several global brands, including Volkswagen, Tata, Mercedes-Benz and Sinotruk, producing both passenger vehicles and heavy commercial trucks for the local and regional markets.

Industry players say increased local assembly could help create jobs, deepen manufacturing capabilities and position Kenya as a regional hub for automotive production.