Kenya’s electric mobility sector is set for a significant boost following Simba Corp’s announcement that its subsidiary, Associated Vehicle Assemblers (AVA), will invest Sh1 billion in a dedicated electric vehicle (EV) assembly line at its Mombasa facility. The investment signals growing confidence in the country’s emerging EV market and reinforces Kenya’s ambition to become a regional hub for electric mobility and automotive manufacturing.
The planned investment will fund specialised EV assembly equipment, factory layout modifications, technician training, and certification programmes. AVA is financing the project independently and has already trained 60 technicians to support operations. The company currently assembles 23 vehicle brands, including passenger vehicles, buses, trucks, and three-wheelers powered by both internal combustion engines (ICE) and electric drivetrains.
The move comes as demand for locally assembled electric vehicles continues to grow, supported by government incentives aimed at accelerating the transition to cleaner transportation. Kenya currently exempts locally assembled EVs from the 35 percent import duty imposed on fully built imported units. In addition, excise duty on EVs was reduced from 20 percent to 10 percent, while value-added tax (VAT) on electric vehicles was eliminated to encourage adoption.
AVA’s dedicated EV assembly line is expected to provide manufacturers and distributors with a cost-effective platform for local production without the need to establish their own assembly infrastructure. The facility is already producing electric vehicles for several companies, including Rideence Africa and electric bus manufacturer BasiGo.
Rideence Africa assembles electric hatchbacks and 16-seater electric vans from completely knocked-down (CKD) kits supplied by Chinese manufacturers, while BasiGo continues to expand local production of electric buses. The Mombasa plant also assembles electric three-wheelers for Car & General, highlighting the growing diversity of Kenya’s electric mobility ecosystem.
Beyond contract assembly, Simba Corp plans to begin assembling its own electric vehicle models. The company intends to locally assemble MG (Morris Garages) electric passenger vehicles, which are currently imported as fully built units. Local production is expected to lower retail prices by reducing import-related costs and improving affordability for Kenyan consumers.
The investment aligns with broader developments within Kenya’s automotive sector. Earlier, CFAO Mobility Kenya announced a Sh2.4 billion investment in Kenya Vehicle Manufacturers (KVM), signalling increasing confidence in local vehicle assembly. Additionally, Chinese automotive giant Dongfeng has partnered with AVA and local distributor ePureMotion to begin assembling electric passenger vehicles in Kenya, starting with the ePureCitie compact electric hatchback.
Despite growing interest, electric passenger vehicles still represent a small share of Kenya’s overall EV market. According to data from the Electric Mobility Association of Kenya (EMAK), the country had 14,750 registered electric vehicles between 2018 and 2024. However, only 326 of these were passenger cars. At the end of 2024, Kenya had 9,144 registered EVs, with electric motorcycles and bicycles accounting for approximately 90 percent of the market.
One of the major barriers to EV adoption has been pricing. Unlike second-hand petrol and diesel vehicles, which benefit from depreciation-based tax calculations, most electric vehicles are imported new and therefore attract higher taxes. Local assembly provides a pathway to lower production costs and improve competitiveness against imported internal combustion engine vehicles.
The Sh1 billion investment also reflects a longer-term ambition beyond assembly. As Kenya strengthens its National Automotive Policy and expands incentives for clean mobility, manufacturers are increasingly viewing local assembly as a stepping stone toward full-scale vehicle manufacturing. For AVA, the new facility represents not only an expansion into electric mobility but also a strategic move toward developing local industrial capacity, creating skilled jobs, and positioning Kenya as a key player in Africa’s rapidly evolving automotive sector.
As government incentives, infrastructure development, and consumer awareness continue to improve, investments such as AVA’s dedicated EV assembly line could play a pivotal role in accelerating Kenya’s transition toward a more sustainable and locally driven transport industry.
