As Bloomberg reported Toyota Tsusho has plans to expand its vehicle assembling plant in Kenya. In a statement, Toyota Tsusho CEO Jun Karube noted that the company will look into the prospects of the multi-million-shilling investment, billed to significantly transform Kenya’s motor vehicle industry. Karube said, “We are keen to build on our investment portfolio in Kenya because of the country’s strategic position as a gateway to the East and Central African regions”. No details of the investment were given.
Kenya is the biggest economy in East Africa and is the economic, commercial, and logistical hub of the entire region. Its strategic location allows it to be used as an export base from which to ship vehicles to other East African nations. Kenya’s automotive distribution is rapidly expanding on the back of infrastructure development and increasing incomes. Furthermore, Nissan is considering local production but it is pushing for the government to take action on tariffs. Toyota began assembly of its Hino brand trucks and buses in Kenya in 2013 at its plant in Changamwe, Mombasa. The automaker has also signed a Memorandum of Understanding (MoU) with the Kenyan government to help the country attain its goals under the “Vision 2030” plan.