Kenya’s new vehicle market has recorded a solid rebound in the first four months of 2026, driven by cheaper credit, improving business activity, and stronger demand from the logistics and construction sectors.
Data from the Kenya Motor Industry Association (KMIA) shows that 4,802 new vehicles were sold between January and April 2026, compared to 4,280 units in the same period last year, marking a 12.2 per cent increase.
Industry players say the growth reflects a gradual recovery in economic activity, supported by lower borrowing costs and improving private sector lending.
KMIA notes that the easing of financing conditions has played a central role in boosting demand. The association points to successive interest rate cuts by the Central Bank of Kenya (CBK), which have reduced the base lending rate from around 12 per cent last year to 8.75 per cent currently. This has made asset financing more affordable for businesses and institutions.
Credit to the private sector has also shown improvement, with CBK data indicating that lending growth rose to 8.1 per cent in March 2026, up from 7.4 per cent in February, after contracting earlier in 2025. Key sectors benefiting include construction, trade, agriculture, and consumer goods, all of which are closely linked to vehicle demand.
Commercial vehicles dominate demand
Most of the vehicles sold during the period were commercial units, reflecting Kenya’s reliance on road transport for business operations.
Trucks led sales with just over 2,100 units, followed by pickups at nearly 1,400 units. Buses, widely used in public transport, schools, and corporate fleets, accounted for close to 700 units, while heavy-duty prime movers stood at 242 units.
The trend highlights strong demand from sectors such as construction, agriculture, retail distribution, and public transport, rather than private passenger car buyers.
Isuzu retains market dominance
Isuzu East Africa remained the clear market leader, selling 2,521 units, up from 2,077 units in the previous year. The company accounted for more than half of total market sales during the period.
CFAO Mobility followed with 1,352 units, while Simba Corporation sold 395 units, ranking third among major dealers.
According to Isuzu East Africa Managing Director Rita Kavashe, demand has been supported by sustained activity in key economic sectors, particularly logistics and infrastructure.
She noted that demand for light and medium commercial vehicles has been boosted by last-mile delivery services, agriculture supply chains, retail distribution, and construction-related transport, including materials for affordable housing projects.
She also highlighted the role of government-related demand, including infrastructure projects, county operations, and public sector fleet purchases.
Kavashe further pointed out that the recovery of the public service vehicle (PSV) segment after disruptions from the COVID-19 period has contributed to improved sales. In addition, school transport demand has risen due to curriculum changes and increased investment in education infrastructure.
She added that election cycles also tend to temporarily boost demand for buses, as public funds such as the Constituency Development Fund (CDF) are sometimes used to support school transport projects.
Despite growth in new vehicle sales, imported second-hand vehicles continue to dominate Kenya’s roads due to their lower prices and wide availability.
Kenya imports between 7,000 and 9,000 used vehicles every month, with Japan supplying the majority share at about 80 per cent. Other sources include the United Arab Emirates, United Kingdom, Singapore, and South Africa.
Industry stakeholders say the gap between new and used vehicles remains wide, largely due to affordability challenges, even as financing conditions improve.
The sector is expected to maintain steady growth if interest rates remain low and business activity continues to recover. However, high operating costs and competition from used imports remain key challenges for new vehicle dealers in the country.
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