The production of locally assembled vehicles hit a record high of 10,005 units, according to a recent report released by the Kenya National Bureau of Statistics (KNBS).
According to the report titled 'Leading Economic Indicators 2022', the local car assembling production surpassed the production recorded in 2021, which had 9,989 cars.
The data, which covered the three quarters of the 2022 financial year, revealed that local car assembling plants exceeded even 2020's production, where the country only assembled 7725 vehicles.
In 2019, Kenya only assembled 7,802 vehicles. However, it marked the start of the increased assembling of motor vehicles in the country.
Increased local production of cars was attributed to the relaxation of importation rules and the setting up of policies regulating the automotive industry in the country.
In 2018, local car assembly plants produced 5653 units only before the policy shift was effected.
A global shortage of computer chips used in car production and other materials such as copper, aluminium, and cobalt led to fewer new vehicles rolling off production lines.
The increased local vehicle assembling was attributed to the weakening of the shilling against the dollar, which put a strain on the cost of importing brand-new cars.
Additionally, demand for new cars from other developed countries pushed local assembly plants to increase production to sustain the local supply.
Furthermore, the fear over price stabilization due to the global recession and inflation also contributed to the increase in local vehicle assembling.
To further encourage local vehicle assembling, the Kenya Bureau of Standards (KEBS) banned the importation of second minibuses; a move also cited as one of the reasons that pushed the local assembling of vehicles.
"KEBS wishes to inform all stakeholders and the general public that effective July 1, 2022, all used passenger minibusses, midibuses, large buses, single articulated and bi-articulated business and double-decker buses shall not be allowed for importation into the country," KEBS statement read in part.
However, wealthy Kenyans and government agencies are the only ones who continued to access brand-new cars, with others resolving to acquire locally assembled cars.
