Isuzu East Africa has taken control of more than half of Kenya’s formal new vehicle market for the first time, tightening its dominance over rivals as recovering business activity boosted demand for commercial units despite still-high borrowing costs.
New data from the Kenya Motor Industry Association (KMI) shows Isuzu sold 2,036 new vehicles between January and March, a 23.54 percent jump from 1,648 units in a similar period last year.
The performance lifted Isuzu’s market share to a record 55.64 percent from 49.97 percent a year earlier, meaning the dealer now accounts for more than one in every two new vehicles sold through Kenya’s formal showroom market.
The latest figures show Isuzu sold more vehicles than all its major rivals combined during the quarter, cementing its position as the country’s dominant dealer in commercial vehicles.
Its share of the market has, as a result, increased from 42.57 percent in the first quarter of 2023 to 45.35 percent in the same period of 2024, before expanding further to current levels.
The company’s stronghold comes as demand for pickups, buses and trucks used in construction, logistics, agribusiness and public transport rises.
While Isuzu widened its lead, rival CFAO Mobility Kenya continued to lose ground in the market.
CFAO, which distributes Toyota, Mercedes-Benz, Volkswagen and Hino brands, sold 896 vehicles during the quarter, down 6.57 percent from 959 units a year earlier.
The Toyota dealer’s market share fell to 24.49 percent from 29.08 percent last year and 34.92 percent in the first quarter of 2023, highlighting the widening gap between the two dealers.
The latest figures show Isuzu sold more than twice the number of vehicles moved by CFAO during the review period.
Industry-wide showroom sales rose 10.95 percent to 3,659 units from 3,298 units a year earlier, signalling improving demand from companies and institutions expanding their fleets.
KMI officials attributed the recovery to increased activity in key sectors of the economy.
‘A notable driver for the auto industry growth this year is from increased economic activities in sectors such as affordable housing construction, road maintenance and agribusiness,’ KMI said.
Despite the improved sales volumes, KMI said the industry continues to face operational and geopolitical challenges that are delaying deliveries and raising costs.
‘A major trend is the shortage of number plates, affecting tens of thousands of vehicles, including motorcycles,’ the association said.
KMI also warned that the conflict in the Middle East has disrupted shipping routes, affecting supply chains and pushing up fuel prices.
‘At a global level, the Middle East conflict is a risk factor that has affected supply chains and caused a spike in fuel prices due to shipping routes disruption,’ KMI said.
The rebound has coincided with easing lending rates, which have made vehicle financing more affordable for businesses and individual buyers.
Most showroom vehicles in Kenya are bought through bank loans or asset financing arrangements, making the industry highly sensitive to movements in commercial lending rates.
Central Bank of Kenya data shows commercial banks’ lending rates averaged 14.7 percent in March 2026 compared with 15.77 percent a year earlier.
Although borrowing costs remain above the 13.09 percent recorded in March 2023, the decline has eased repayment pressures for transporters, contractors and businesses seeking to expand their fleets.
The recovery in vehicle sales has also been supported by the relative stability of the shilling, which has hovered around Sh129 against the US dollar since August 2024, its most stable run in decades.
The stable exchange rate has helped dealers and importers better manage vehicle pricing and inventory costs in a market heavily dependent on imports.
Wanjohi Kangangi, the Isuzu East Africa director of sales and marketing, said that lower borrowing costs and improved cash flows among contractors have revived business confidence since last year.
‘Interest rates have come down, so a lot of businesspeople are finding loans more affordable. Some of the payments that had been stuck for government contractors have started coming through,’ he said late last year.
‘A lot of our customers that were previously completely stuck have started to see money coming into their businesses and they are now expanding their businesses.’
He said improved economic stability had encouraged businesses to resume expansion plans after years marked by expensive credit, delayed payments and inflationary pressures.
‘By and large, we are sitting in a good spot. People feel we are more stable than we were in recent years. Today, there is some stability and this is what businesses want to be able to get on,’ he said.
The company has also expanded customer engagement programmes and financing partnerships targeting sectors such as logistics, construction and agriculture.
Smaller dealers also posted mixed results.
Simba Corporation – the franchise holder for Mitsubishi, Proton, Ashok Leyland and Mahindra – recorded a 4.65 percent decline in sales to 287 units, reducing its market share to 7.84 percent from 9.13 percent a year earlier.
Tata Africa Holdings, however, nearly doubled sales to 204 units from 109 vehicles, lifting its market share to 5.58 percent from 3.31 percent.