Simba Corp’s Associated Vehicle Assemblers (AVA) will invest Sh1 billion in a dedicated electric-vehicle assembly line at its Mombasa plant, as it positions itself to tap growing demand for locally assembled EVs.
The assembler said the new investment covers specialised EV assembly equipment, factory layout modifications, technician training and certification. AVA said it is funding and building the line itself.
AVA, one of Kenya’s largest contract assemblers, currently operates assembly lines for 23 internal combustion engine (ICE) and electric vehicle brands, spanning passenger cars, trucks, buses and three-wheelers.
“Associated Vehicle Assemblers, part of the Simba Corp portfolio, is committing an estimated Sh1 billion to a dedicated electric-vehicle assembly line, with 60 trained technicians already on the floor,” Simba Corp told Business Daily.
“It is also the platform for a longer-term move toward full vehicle manufacturing in Kenya, and ties directly into the National Automotive Policy and its implementation.”
The new EV line targets manufacturers and distributors seeking to begin local production without incurring the cost of establishing their own assembly infrastructure, while also benefiting from the incentives Kenya gives to local assemblers.
The line is already producing electric vehicles for several EV firms, including the Chinese-owned dealer Rideence Africa and the Kenyan bus-and-van maker BasiGo.
“AVA is building for the e-mobility sector before the market demands it. We are sourcing current-generation technology and training a team to bring partners into production from day one,” Daniel Moki, AVA’s acting managing director, said.
He said AVA is in talks with additional local and international EV firms: “The bigger horizon is moving from assembly to manufacturing.”
Simba Corp also plans to begin assembling its own electric vehicle models at the facility, starting with passenger cars before expanding into trucks and buses.
The company plans to assemble the MG (Morris Garages) electric cars it has been importing fully built, which is poised to give Kenyan buyers access to the Chinese-owned brand’s EVs at lower prices.
“Assembling the MG range locally with AVA lets us put modern electric vehicles within reach of the Kenyan customer, and do it with local jobs and local skills,” Dinesh Kotecha, Simba Corp’s CEO, said.
EV assemblers in Kenya are exempt from the 35 percent import duty levied on fully built units shipped into the country.
The government has also lowered excise duty on EVs from 20 percent to 10 percent and exempted them from value-added tax to boost their uptake in the new-vehicle market.
These tax benefits help AVA’s clients lower the prices of its vehicles in the Kenyan market and are part of the government’s efforts to encourage local assembly.
Toyota dealer CFAO Mobility Kenya has also invested Sh2.4 billion in its subsidiary Kenya Vehicle Manufacturers (KVM), indicating that local assembly is growing in the country. Assembly of vehicles running on petrol or diesel have separate tax breaks.
EV cars compete against a large pool of cheaper, second-hand ICE imports, and industry analysts say local assembly could significantly lower prices and stimulate demand.
This is because EV assemblers could avoid the depreciation schedule that the Kenya Revenue Authority (KRA) applies to the fully-built imports’ retail selling price to calculate import taxes.
Depreciation rates range from five percent for cars less than a year old to 65 percent for those between seven and eight years old. This is applied to the vehicle’s original value, with older cars having higher depreciation and lower taxes.
Because electric cars are mostly new, they attract higher taxes than older petrol vehicles, pushing prices beyond the reach of many Kenyan buyers.
AVA this year began assembling electric hatchbacks and 16-seater electric vans for Rideence Africa, the dealer behind Beijing Henrey’s Xiaohu electric cars in Kenya from late 2023.
Rideence assembles the vehicles from completely knocked-down kits supplied by Beijing Henrey, alongside those sourced from Chinese commercial vehicle manufacturer Jiangsu Joylong.
AVA’s Mombasa plant also assembles electric three-wheelers, including tuk-tuks, for Car & General and electric vans for BasiGo, Kenya’s largest electric bus supplier.
In December last year, Chinese automotive giant Dongfeng announced plans to begin local assembly of electric passenger vehicles through a partnership with AVA and local distributor ePureMotion.
The programme is expected to start with the ePureCitie compact electric hatchback.
Dongfeng has said it plans to introduce additional passenger and light commercial electric vehicles targeting individual buyers, fleet operators, logistics companies and public-sector customers.
While Kenya has a long-established vehicle assembly industry, most local production from companies like AVA, KVM and Isuzu East Africa has historically focused on commercial vehicles such as pick-ups, trucks and buses.
Kenya has been establishing itself as a regional electric mobility hub through the range of tax incentives introduced in 2023 to encourage local EV assembly.
Still, electric cars have struggled to gain traction compared with e-motorcycles and buses. At the end of 2024, Kenya had 9,144 registered EVs, according to data from the Electric Mobility Association of Kenya (EMAK).
E-motorcycles and bicycles dominate the sector, comprising 90 percent of the EV market. Out of the 14,750 EVs registered in the country between 2018 and 2024, only 326 were passenger cars.
