Historic Moment in Thika as Kenya Begins Assembling One of Its Most Popular Vehicles

Kenya has taken another significant step in its industrialisation journey following the launch of the locally assembled Toyota Hiace van at the Kenya Vehicle Manufacturers (KVM) plant in Thika.

The milestone was marked during a ceremony officiated by Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui, who witnessed the first Toyota Hiace roll off the assembly line following a Ksh. 2.3 billion investment by CFAO Mobility Kenya.

The project, implemented through a partnership between Kenya Vehicle Manufacturers (KVM) and CFAO Mobility Kenya, is expected to boost local manufacturing, create jobs and strengthen Kenya’s position as a leading automotive production hub in the region.

Speaking during the launch, CS Kinyanjui said the Toyota Hiace holds a special place in Kenya's transport history, having played a key role in transforming public transport in the country.

“For many Kenyans, the story of public transport transformation began in the 1990s when the Toyota Hiace was among the brands that replaced the then popular ‘face me’ matatus, revolutionising comfort, reliability and mobility across the country,” said Kinyanjui.

He noted that for decades, the vehicle has been imported into Kenya, making the commencement of local assembly a historic achievement.

“For decades, Kenya has imported this iconic vehicle. Today, we are marking a major milestone in our industrial journey with the launch of the local assembly of the Toyota Hiace at Kenya Vehicle Manufacturers in Thika,” he said.

According to the Cabinet Secretary, the project goes beyond vehicle assembly and represents a broader effort to grow Kenya’s industrial capacity.

“This is more than the assembly of a vehicle. It is about creating jobs, strengthening local industries, building technical skills and growing Kenya’s manufacturing capacity,” he stated.

Kinyanjui revealed that KVM has already created employment opportunities for more than 200 people, with future expansion plans expected to generate even more jobs, particularly for young Kenyans.

He added that local vehicle assembly creates demand for locally produced components, opening doors for suppliers, manufacturers and small and medium-sized enterprises (SMEs) to participate in the automotive value chain.

“Local assembly stimulates the growth of supporting industries and creates opportunities for businesses that supply parts, materials and services. This is how industrial ecosystems are built,” he said.

The Toyota Hiace remains one of the most popular vans in Kenya and across East Africa, widely used in public transport, tourism, logistics and commercial operations. Industry experts attribute its popularity to its reliability, fuel efficiency, low maintenance costs and strong resale value.

Compared to competing models such as the Nissan Urvan and various Foton vans, the Hiace continues to enjoy a strong reputation for durability, readily available spare parts and customer confidence.

The launch is also expected to support the government's “Buy Kenya, Build Kenya” initiative, which seeks to promote local manufacturing, reduce dependence on imports and create sustainable employment opportunities.

“This investment will create jobs, support local manufacturing and strengthen Kenya’s position as a growing automotive hub in Africa,” said Kinyanjui.

The commissioning of the new assembly line marks a major milestone not only for Kenya but also for East Africa’s automotive sector, signalling growing investor confidence in the country’s manufacturing capabilities.

With the first locally assembled Toyota Hiace now rolling out of Thika, industry players believe Kenya is steadily positioning itself as a preferred destination for automotive manufacturing and assembly in the region.

📷 Made in Kenya. Built for Africa.