CFAO Commissions Toyota Hiace Assembly Line in Thika
Kenya Vehicle Manufacturers (KVM), in partnership with CFAO Mobility Kenya, has officially commissioned a new Toyota Hiace assembly line at its Thika facility.
CN Quick Facts
- Investment: KSh 2.3 billion
- Facility: Kenya Vehicle Manufacturers (KVM), Thika
- Vehicle: Toyota Hiace
- Assembly Type: Completely Knocked Down (CKD)
- Majority Shareholder: CFAO Mobility Kenya (99.4%)
- Other Shareholders: National Treasury, CMC Holdings
- Initial Production Target: Approximately 700 units in the first year
CFAO Mobility Kenya has officially commissioned a new Toyota Hiace assembly line at the Kenya Vehicle Manufacturers (KVM) plant in Thika following a KSh 2.3 billion investment aimed at expanding local vehicle production. The project follows CFAO’s acquisition of a 99.4% controlling stake in KVM, giving the company operational control of one of Kenya’s largest vehicle assembly facilities.
What's in this Article
Now, the vehicle is entering a new chapter.
Kenya Vehicle Manufacturers (KVM), in partnership with CFAO Mobility Kenya, has officially commissioned a new Toyota Hiace assembly line at its Thika facility. The assembly line was launched in the presence of Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui, who described the project as a significant step towards strengthening local manufacturing, creating jobs and increasing value addition within Kenya’s automotive sector.
The new production line will assemble the Toyota Hiace from Completely Knocked Down (CKD) kits imported into Kenya before final assembly at the Thika plant.
The Toyota Hiace is one of Kenya’s most widely used commercial vehicles, serving public transport operators, tour companies, schools, hospitals, logistics firms, and corporate fleets.
According to CFAO Mobility Kenya, the investment forms part of a broader modernisation programme at KVM designed to expand production capacity while supporting local manufacturing and skills development.
Why It Matters
The investment strengthens Kenya’s efforts to grow its automotive manufacturing industry at a time when the government continues to promote local vehicle assembly through incentives for CKD production.
For fleet buyers, locally assembled vehicles offer access to new units backed by manufacturer warranties and after-sales support. The project is also expected to create employment opportunities and increase participation by local suppliers in the automotive value chain.
While the locally assembled Hiace enters a market still dominated by used imports, it provides an additional option for organisations seeking new commercial vehicles with predictable maintenance costs.
Background
The launch follows CFAO Mobility Kenya’s KSh 2.4 billion investment to acquire a 99.4% controlling stake in KVM, consolidating its vehicle assembly operations under the Thika facility. The National Treasury and CMC Holdings hold the remaining shares.
Kenya has been encouraging local vehicle assembly through tax incentives on CKD kits as part of its industrialisation strategy. The Hiace joins a growing list of vehicles assembled locally as manufacturers increase investment in domestic production.
What’s Next?
CFAO Mobility Kenya expects production to ramp up as demand grows, with the facility targeting commercial, institutional and fleet customers. The company says the investment is part of its broader vision of positioning Kenya as a regional automotive manufacturing hub while strengthening the domestic automotive value chain.
CarNews KE Explainer: Why Kenya’s Locally Assembled Toyota Hiace Matters More Than You Think explores how CKD assembly works, whether locally assembled Hiaces can compete with used imports, and what the investment means for Kenya’s automotive industry.
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