This archive report was first published on 23 July 2019.
On July 23, 2019, Toyota Kenya announced plans to inject Sh100 million into local production of its popular Hilux model, starting October.
The move is part of the company's efforts to expand its portfolio of Kenya-produced motor vehicles, more than three years after the firm first went public on the plans.
Toyota Kenya, which already assembles Land Cruiser pick-ups, Hino trucks, and Yamaha Motorcycles, aims to churn out more than 500 Hilux cars during the first year of production.
According to Toyota Kenya Managing Director Arvinder Reel, the project is part of President Uhuru Kenyatta's Big 4 agenda, aiming to create about 1,000 jobs and boost the local manufacturing sector.
Mr. Reel stated, 'We took a decision to work with Hilux because this is one of our highest selling models. By end of October we expect the first batch of locally assembled Hilux out. This will be the first phase since we are looking to assemble other models in the near future.'
The project is also banking on the Automotive Policy, which is still being processed for implementation, to address the challenges affecting the vehicle industry, including the lack of dedicated legal, institutional regulatory framework, importation of parts by franchise holders instead of procuring from local parts manufacturers, and influx of used fully built units.
Currently, the local auto industry is producing just about 6,000 vehicles per year, which is only a fifth of the installed capacity of 34,000 units.
At its height in the 1980s, the industry was producing over 13,000 vehicles per year.
