Lee Kinyanjui: New Cars Will Soon Be Cheaper than Used Imports

Kenya could soon stop being a country where most people rely on imported used cars, with brand-new locally assembled vehicles expected to cost the same as or even less than second-hand imports.

Cabinet Secretary for Investment, Trade and Industry Lee Kinyanjui says the shift is already happening, driven by government policy, tax incentives and growing local manufacturing.

“Soon, Kenyans will be able to purchase brand-new vehicles at the same price, or even lower, than importing an eight-year-old used vehicle,” Kinyanjui wrote in a statement shared on X on Monday, February 2, 2026.

He said local manufacturing is key to the change, and praised Isuzu for strengthening Kenya’s position in the global automotive industry.

“This shift is already taking shape, and we congratulate Isuzu for putting Kenya on the global map as the first country to manufacture the MU-X model outside Thailand,” he wrote.

Kinyanjui explained that assembling vehicles locally makes them cheaper because manufacturers benefit from tax incentives, reducing the final cost paid by buyers.

“With local assembly attracting tax incentives, the price of the MU-X will drop by 27 per cent, from Ksh 13.5 million to Ksh 9.9 million,” he added.

He said the price drop is a major moment for Kenyan consumers who have long depended on second-hand imports because new cars have been out of reach.

“For the first time, Kenyans can access a brand-new, zero-mileage vehicle at a price they have traditionally paid for a used import,” Kinyanjui wrote.

The CS said the government is pushing broader reforms to change the structure of the automotive market, with the goal of reducing reliance on used imports over time.

“This is the narrative we are changing through the Automotive Policy—moving Kenya from a used-vehicle market to a brand-new vehicle market,” he stated.

He added that new financing plans are also being considered to support local production of vehicle parts, which could reduce costs further in the coming years.

“The Samurai Bond, which will finance local manufacturing of vehicle components, will further reduce vehicle prices,” he stated.

Kinyanjui also said government procurement is being used as a tool to strengthen local assembly and encourage manufacturers to increase the amount of locally made components in their vehicles.

“Also, the government’s leasing programme is encouraging local assembly and parts manufacturing, with vehicles that have higher local content enjoying better tax incentives,” he wrote.

The announcement was made in the presence of senior industry and diplomatic leaders, showing the level of attention being given to the sector.

“Present were Junichi Kubo, President, Isuzu Motors International; Rita Kavashe, Managing Director, Isuzu East Africa; Hiroshi Matsuura, Ambassador of Japan to Kenya; and Juma Mukhwana, Principal Secretary, Industry,” Kinyanjui wrote.