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Kenya-China bid to expand local car manufacturing industry
A Chinese automaker has set its eyes on Kenya's local vehicle market, announcing plans to begin local assembly next year.
The move by the firm named Chery aims to create jobs and strengthen the country's manufacturing base, amid a market dominated by second-hand imports.
The announcement by Chery's local partner, Caetano Kenya, represents a significant step in Kenya's efforts to boost local vehicle production through incentives to car makers, part of a broader import substitution strategy to reduce reliance on shipped-in goods.
"The year 2026 will see the beginning of local assembly of Chery vehicles," said Aurélien Glay, Managing Director of Caetano Kenya.
"This initiative is designed to create jobs, enable transfer of skills, accelerate industrial growth, and generate greater local value."
Local assembly – known in the industry as Completely Knocked Down (CKD) operations, where vehicle parts are imported and assembled locally – offers Kenya multiple advantages.
It creates manufacturing jobs, develops technical skills, and reduces the final cost of vehicles compared to importing fully-built units, with the approach aligning with the government's efforts to grow the country's industrial base.
Kenya's automotive market has long been dominated by imported used vehicles, primarily from Japan, which account for the majority of vehicles on Kenyan roads.
The government has been implementing policies to encourage local assembly, including tax benefits for manufacturers that set up local operations.
The launch introduces Chery SUV models to the Kenyan market. The vehicles will be backed by a 7-year or 200,000-kilometre warranty, among the most comprehensive in the local market, as the brand seeks to build consumer confidence against established competitors.
Its entry adds momentum to Kenya's growing new vehicle market, particularly in the SUV segment, which has been expanding rapidly as consumer preferences shift toward larger vehicles.
Caetano Kenya, which also distributes Hyundai, Ford and Renault vehicles in the country, aims to sell between 200 and 400 Chery vehicles in the first year.
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