Nairobi — The government's push to lease more vehicles is expected to spur local automobile production, create jobs, and cut reliance on imported cars, Trade and Industry Cabinet Secretary Lee Kinyanjui has said.
Speaking during the unveiling of the local assembly plant for the Isuzu MU-X variant, Kinyanjui noted that the dominance of used cars in the Kenyan market has historically hindered the growth of local manufacturing.
"One of the biggest challenges that every auto manufacturer will cite is that as long as you have a huge component of used cars contributing to your market, then it does not make justification to have a local industry."
Under the new approach, vehicles eligible for government leasing programs must be locally assembled with a specified percentage of local content. This, Kinyanjui said, will support the domestic auto industry while positioning Kenya as a regional exporter of vehicle parts.
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He emphasized the positive macroeconomic environment supporting the sector, noting that between 2024 and 2025, Kenya's automotive industry grew by 17.5%, and that sustained growth over the next five years could build the critical mass needed for a robust local manufacturing ecosystem.
"More production, more employment, more jobs, and also reducing our import dependence for the automotive industry."
According to the CS, the government intends to phase out the importation of older used vehicles, restricting entry to only those first registered from January 1, 2019, under current KS1515 standards. The move aims to improve road safety, cut emissions, and boost local auto production.
He added that the policy to tighten the used car market is part of broader automotive reforms under the National Automotive Bill (NAB 2025), which has completed public participation and is being refined with submissions from stakeholders. The government plans to enact the Bill into law before the next financial year.
Currently, the Kenya Bureau of Standards (KEBS) enforces an eight-year age limit on imported used cars under the Kenya Standard Code of Practice for Inspection of Road Vehicles (KS 1515:2000).
As of January 1, 2026, only right-hand-drive vehicles first registered in 2019 or later are eligible for importation, effectively banning older used vehicles at Kenyan ports.
