Kenya Vehicle Manufacturers (KVM) today officially commissioned a new Toyota Hiace assembly line at its Thika manufacturing facility, marking a significant milestone in Kenya’s automotive industrialization journey and reinforcing the country’s position as a leading vehicle manufacturing hub in East Africa.
The new assembly line forms part of a broader modernization and expansion programme supported by a ksh 2.3 Billion investment by CFAO Mobility Kenya in KVM. 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 Toyota Hiace has for decades been one of the most recognizable and trusted commercial vehicles on Kenyan roads, serving businesses, schools, institutions, tour operators, logistics providers, and the public transport sector. Its local assembly represents a major step toward deepening local value addition and expanding Kenya’s automotive manufacturing ecosystem.
The commissioning ceremony was presided over by the Cabinet Secretary for Investments, Trade and Industry, Hon. Lee Kinyanjui, and attended by senior representatives from Toyota Motor Corporation, Toyota Tsusho Corporation, CFAO Group, government agencies, industry stakeholders, and development partners.
Speaking during the launch, CFAO Mobility Kenya Managing Director, Arvinder Reel, described the investment as a landmark achievement for Kenya’s manufacturing sector and a demonstration of confidence in the country’s industrial capabilities.
“The launch of the Toyota Hiace assembly line at KVM represents more than the introduction of a new production line—it is an investment in Kenya’s industrial future. For over 50 years, Toyota has been part of Kenya’s mobility story. Today, we take that commitment a step further by expanding local manufacturing capacity, creating skilled employment opportunities, transferring advanced production expertise, and supporting the growth of local supplier networks.”
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“By assembling the Toyota Hiace locally, we are strengthening the domestic automotive value chain while delivering world-class vehicles built to global Toyota standards and tailored for Kenyan operating conditions. This project demonstrates what can be achieved through strong partnerships between government, industry, and global manufacturers.”
The investment is expected to generate substantial economic impact, creating over 200 direct jobs and more than 600 indirect jobs across the automotive value chain. In addition, KVM and its partners have invested heavily in technical training and knowledge transfer, with Kenyan engineers and assembly specialists undergoing advanced training programmes in South Africa and Cambodia to acquire global best practices in vehicle assembly and quality management.
The company also continues to work closely with local component manufacturers to increase local content participation and support the development of globally competitive automotive supply chains within Kenya.
From a customer perspective, locally assembled Toyota Hiace units will offer fleet operators, transport SACCOs, institutions, and corporate customers access to a globally trusted product backed by Toyota’s renowned quality, durability, and reliability. Customers will also benefit from a comprehensive manufacturer warranty of five years or 150,000 kilometres, providing enhanced peace of mind and reduced total cost of ownership.
Safety remains a key priority in the production process. Every vehicle assembled at KVM undergoes rigorous quality assurance procedures to ensure compliance with Toyota’s global manufacturing standards. The locally assembled Toyota Hiace incorporates advanced safety features, including dual SRS airbags, Anti-lock Braking System (ABS), reinforced impact protection structures, and technologies designed to enhance occupant safety in the event of a collision.
The launch of the Toyota Hiace assembly line also marks the successful completion of the first phase of KVM’s facility modernization programme. The upgrade has included significant investments in production infrastructure, environmental compliance initiatives, new assembly technologies, and enhanced logistics capabilities aimed at supporting future growth and additional vehicle assembly programmes.
As Kenya continues to advance its industrialization agenda under the “Buy Kenya, Build Kenya” framework, KVM and CFAO Mobility reaffirm their commitment to supporting local manufacturing, developing technical skills, creating employment opportunities, and contributing to the growth of a sustainable automotive industry.
The company expects to assemble approximately 600 Toyota Hiace units in the first year of production, with capacity expected to increase progressively in line with market demand and the continued implementation of policies supporting local vehicle assembly.
