The government’s move to clear contractor bills and restart road projects has helped drive up new vehicle sales in the country, as eight-month uptake hit a new high.
Kenya Motor Industry Association (KMIA) industry data for August 2026, released yesterday, indicates new units sold in the year to August rose 27.3 per cent or by 2,435 units to a total of 11,349 vehicles.
This is up compared to the 8,914 units sold during a similar period last year by the 11 main dealers of new vehicles with showrooms in major towns across the country, where some export to regional markets.
The Kenyan government cleared Sh177 billion in pending road contractor bills in February 2026, followed by an additional mobilisation of Sh139 billion announced in August 2026 to settle subsequent certified works between August 21 and August 28, 2026.
The Sh139 billion was mobilized via the Trade Development Bank and the Road Maintenance Levy Fund securitisation as the government moved to clear pending bills dating back to 2020.
The automotive market recorded 1,592 units sold in August 2026, with highest monthly sales being recorded in July at 1,912 units.
“Industry performance was primarily propelled by government fiscal intervention, specifically the mobilisation of Sh139 billion to clear contractor bills and restart road projects, which spurred heavy commercial vehicle demand,” KMIA said in its monthly report.
Heavy commercial vehicles mainly used in long-haul freight transportation, construction and logistics networks, accounted for the lion’s share with dealers selling a total of 4,836 units, where Isuzu East Africa dominated with 3,301 trucks sold.
Prime movers which include heavy-duty tractor trucks, mechanical energy converters accounted for 844 units, a significant number according to dealers where CFAO dominated the market.
Stable economic activities in transport (including public transport), agriculture, manufacturing, retail and other key sectors also drove uuptake of new vehicles.
Single cabin and double cabin pickup trucks sold during the period totaled 1,934 and 1,119 units, respectively.
Minibuses of 21-40 seats totaled 644 units while large buses (over 40 seats) sold were 223.
Isuzu East Africa maintained its market leadership with a 47.6 per cent industry share, selling 5,405 units year-to-date.
Within the SUV-D category, Isuzu achieved a 350 per cent year-to-date volume surge (jumping from 20 to 90 units), recording a dominant 61.2 per cent segment share.
“This performance of the mu-X 7-seater SUV for instance was driven by local assembly price competitiveness, increased public sector procurement under the Buy Kenya Build Kenya policy, and an aggressive retail conversion strategy targeting buyers moving away from imported used alternatives,” Isuzu said.
CFAO came in second with 3,942 units sold year-to-August as it took 34.7 per cent of the markeshare.
Other notable sales were recorded by Simba Corporation (865 units) and Tata Africa (533 units).
The industry is keen to drive growth in the country’s automotive industry mianly through policy and a phased reduction of use-car imports.
According to Isuzu East Africa chairperson and managing director Rita Kavashe, the country’s assembly and production capacity utilization is only at 34 per cent of the installed capacity, meaning 60 per cent capacity is still idle.
