Simba Corporation’s subsidiary Associated Vehicle Assemblers (AVA) is investing Sh1 billion in a dedicated electric vehicle assembly line at its Mombasa plant, strengthening Kenya’s growing electric mobility sector. The investment supports the expansion of Kenya Electric Vehicles manufacturing through new assembly equipment, factory upgrades, and workforce training. The move reflects rising confidence in local vehicle production and growing demand for cleaner transportation solutions across East Africa.
Key Overview
- Simba Corporation will invest Sh1 billion in EV assembly
- AVA will establish a dedicated electric vehicle production line
- Investment includes equipment upgrades and factory modifications
- More than 60 technicians have already been trained
- AVA currently assembles 23 vehicle brands
- Government incentives continue to support EV adoption
- Kenya’s EV market is expected to grow significantly in coming years
Electric Vehicle Assembly Gets Sh1bn Boost from Simba Corp
Simba Corporation is making a major investment in Kenya’s automotive sector through plans to establish a dedicated electric vehicle assembly line at its Associated Vehicle Assemblers (AVA) facility in Mombasa.
The company will invest approximately Sh1 billion in the project as it seeks to capitalize on growing demand for locally assembled electric vehicles and support the expansion of Kenya’s emerging electric mobility industry.
According to AVA, the investment will cover specialized assembly equipment, factory modifications, workforce training, and certification programs designed to prepare the facility for large-scale EV production.
The company confirmed that the project will be fully financed and developed internally as part of its long-term growth strategy.
Strengthening Local Manufacturing Capacity
The planned investment represents one of the most significant commitments to EV Manufacturing Kenya has seen in recent years.
Associated Vehicle Assemblers currently operates production lines for 23 vehicle brands, including passenger vehicles, buses, trucks, and three-wheelers powered by both internal combustion engines and electric drivetrains.
The addition of a dedicated EV assembly line will allow the company to expand its production capabilities while supporting Kenya’s ambition of becoming a regional automotive manufacturing hub.
AVA revealed that 60 trained technicians are already working at the facility, demonstrating the company’s commitment to developing the technical skills needed for electric vehicle production.
Growing Momentum for Electric Mobility
The investment comes at a time when Electric Mobility Kenya continues to attract increasing interest from investors, manufacturers, and policymakers.
Government efforts to reduce transport emissions and promote cleaner transportation have encouraged greater participation across the EV value chain.
Several industry players are expanding operations as they anticipate stronger demand driven by supportive policies, falling battery costs, and increasing awareness of electric transportation.
The government has introduced several incentives aimed at encouraging EV adoption, including reducing excise duty on electric vehicles from 20 per cent to 10 per cent and exempting EVs from value-added tax.
Local assemblers also benefit from avoiding the 35 per cent import duty imposed on fully built vehicle imports.
These incentives are helping improve affordability while encouraging investment in domestic production.
Local Assembly Offers Competitive Advantages
Industry stakeholders believe Local EV Assembly can play a crucial role in accelerating electric vehicle adoption across Kenya.
Locally assembled vehicles typically benefit from lower production costs compared to imported fully assembled units.
This cost advantage can help reduce vehicle prices, making electric cars more accessible to consumers and businesses.
In addition to affordability, local assembly creates employment opportunities, supports skills development, and promotes technology transfer within the country.
The growth of local manufacturing also stimulates demand for components and services from domestic suppliers, creating broader economic benefits throughout the automotive value chain.
Context is everything. Stay ahead of shifting trends with today’s market updates, and uncover emerging opportunities using the Serrari Group Market Index and Marketplace. Then, take control of your own financial future by exploring our Money & Life Reset Transformation Blueprint ™ to build stronger habits, create better systems, and design a path toward lasting wealth.
Automotive Sector Expansion Continues
The announcement follows other major investments in Kenya’s vehicle manufacturing sector.
Recently, local assembly of the Toyota Hiace matatu began at Kenya Vehicle Manufacturers (KVM) in Thika, a project the government described as an important milestone for industrial development.
Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said the initiative demonstrates Kenya’s commitment to strengthening local manufacturing while creating jobs and supporting industrial growth.
According to the Cabinet Secretary, KVM has already created more than 200 jobs, with future expansion expected to generate additional employment opportunities.
Growing investment by both AVA and KVM highlights increasing confidence in Kenya’s automotive sector and its potential to become a regional production center.
Challenges and Opportunities in the EV Market
Despite growing momentum, Kenya’s electric vehicle market remains relatively small compared to conventional vehicle segments.
At the end of 2024, the country had approximately 9,144 registered EVs, with electric motorcycles accounting for around 90 percent of the market.
Between 2018 and 2024, Kenya registered about 14,750 electric vehicles, of which only 326 were passenger cars.
Challenges such as limited charging infrastructure, higher upfront vehicle costs, and concerns regarding battery replacement continue to slow wider adoption.
However, industry participants remain optimistic that supportive government policies, declining battery prices, and expanding infrastructure will drive significant growth over the coming years.
Outlook
Simba Corporation’s Sh1 billion investment signals growing confidence in Kenya’s electric vehicle future. By establishing a dedicated EV assembly line, AVA is positioning itself to capitalize on rising demand for cleaner transportation while supporting local manufacturing and job creation.
As government incentives continue to encourage investment and adoption, local assembly is expected to play a critical role in making electric vehicles more affordable and accessible. The investment also strengthens Kenya’s ambition to become a leading automotive manufacturing and electric mobility hub in East Africa.
FAQ’s
Q1: What is Simba Corporation’s new EV investment?
Simba Corporation, through its subsidiary Associated Vehicle Assemblers (AVA), is investing Sh1 billion to establish a dedicated electric vehicle assembly line at its Mombasa plant to support local EV production.
Q2: How will the investment benefit Kenya’s automotive industry?
The investment will expand local vehicle manufacturing capacity, create skilled jobs, support technology transfer, and strengthen Kenya’s position as a regional hub for electric vehicle production.
Q3: Why is local EV assembly important for Kenya?
Local EV assembly can help reduce vehicle costs, increase access to electric vehicles, stimulate demand for locally manufactured components, and promote the growth of a sustainable automotive value chain.
Q4: What challenges does Kenya’s electric vehicle market still face?
Despite growing investment, the EV sector faces challenges such as limited charging infrastructure, higher upfront vehicle costs, and concerns about battery replacement expenses. However, government incentives and increasing private-sector investment are expected to support future growth.
Sources: Kahawatungu, Business Insider Africa, Dealfish, Mjengo Hub
Your financial future isn’t something you wait for—it’s something you build.
The real question is: when do you begin?
Move beyond simply staying informed.
Navigate the markets with clarity—track trends through the Serrari Group Market Index, uncover opportunities in the Serrari Marketplace, and build practical knowledge with our Curated Wealth Builder Platform.
Stay connected to what truly matters.
Get daily insights on macro trends and financial movements across Kenya, Africa, and global markets—delivered through the Serrari Newsletter.
Growth opens doors.
Advance your career through professional programs including ACCA, HESI A2, ATI TEAS 7 , HESI EXIT , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟—designed to move you forward with confidence.
See where money is flowing—clearly and in real time.
Track Money Market Funds, Treasury Bills, Treasury Bonds, Green Bonds, and Fixed Deposits, alongside global and African indexes, key economic indicators, and the evolving Crypto and stablecoin landscape—all within Serrari’s Market Index.
