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Auto Parts & Accessories

Kenya is the largest and wealthiest economy in East Africa which plays an important regional role. Kenya’s sizeable middle class, progressive business environment, regional market access and history of automotive assembly positions the country well as a potential East African automotive hub.

The volume of imported cars and motorcycles has been on the increase due to the availability of attractive credit from financial institutions and the rise of the middle class. If the current trend of 10% to 12% growth per annum on vehicle imports is to be maintained, Kenya will have five million vehicles on the road by the year 2030.To date, Kenya still highly depends on imports to meet domestic demand, with imports making up 90% above of bilateral automotive trade and second-hand vehicles accounting for over 80% of those imports. As the regional gateway on account of the Port of Mombasa, over 90% of Kenya’s automotive exports are to other African countries, with Uganda and Tanzania being the biggest markets.

  • Volkswagen started locally assembling its 7-seater VW Tiguan Allspace SUVs, which will retail at about KSh5.5 million. The car maker also launched a local assembly of its 5-seater Tiguan SUV, set to retail at about KSh4.5 million.
  • The East African lubricants market was evaluated to be $2.8 billion in 2018 and is progressing at a CAGR of 3.15% during the forecast period of 2019-2025.
  • Mahindra launches locally assembled Scorpio pick-up vehicle in Kenya.

Kenya has planned to promote its automotive sector. Recent policies have been centred on attracting foreign investment to the sector – the government offers a range of incentives for investors such as tax breaks – while reducing the dominance of the used car market. International players control much of Kenya’s automotive industry, with used car imports from countries such as Japan accounting for over 80% of annual car sales.