Chinese manufacturers more than doubled their share of Kenya’s new vehicle market in nine months to September 2026, riding on a jump in sales of trucks on increased government payments to road contractors.
Sales of Chinese brands rose 152 percent to 1,847 vehicles in the nine-month period from 733 in a similar period last year, data from the Kenya Motor Industry Association (KMI) show.
The growth was more than five times compared with 27 percent expansion in domestic showroom vehicle sales to 12,606 units from 9,924 in the corresponding period last year, with easing lending rates also helping revive demand for commercial units.
The rapid expansion lifted the share of Chinese brands in locally sold new vehicles to 14.65 percent from 7.39 percent, meaning they accounted for nearly one in every seven new vehicles purchased in Kenya.
The gains reflect an increasingly visible presence of Chinese manufacturers in a market traditionally dominated by Japanese, European and other established global vehicle brands.
Sinotruk, distributed locally by CFAO Mobility Kenya, accounted for the bulk of the expansion, with sales jumping 169.5 percent to 1,442 vehicles from 535.
The truckmaker contributed 907 of the additional 1,114 vehicles sold by Chinese brands, representing 81.4 percent of their combined sales growth.
This highlights the growing importance of commercial vehicles in the growing Chinese presence, with manufacturers seeking to tap demand from transporters, construction companies and businesses requiring trucks for cargo distribution.
The expansion, however, spread beyond heavy commercial vehicles, with passenger vehicle brands including BYD, Changan and Chery recording higher sales as more Chinese manufacturers establish themselves in Kenya’s showroom market.
BYD, also sold by CFAO Mobility Kenya, increased its sales to 54 vehicles from two, while Changan, represented by Inchcape Kenya, doubled deliveries to 73 from 36.
Chery Tiggo, whose deals are handled by Salvador Caetano, recorded 50 sales against none in the corresponding period last year, the KMI numbers show.
Foton, another Chinese commercial vehicle manufacturer distributed by Mobikey Truck and Bus, nearly doubled sales to 168 units from 88.
The figures suggest Chinese manufacturers are broadening their presence across different vehicle categories, rather than relying exclusively on the commercial truck segment to expand their market position.
Other brands also recorded mixed performances, with Great Wall Motors (GWM) increasing sales to 18 vehicles from eight, while JMC deliveries rose to 21 from 15. However, Haval, distributed by Crown Motors, recorded a sharp slide to four vehicles from 31, while Beiben sales dipped marginally to 17 from 18.
Despite the uneven performance among individual manufacturers, the combined figures show Chinese brands gaining ground considerably faster than the wider market.
Their expansion comes as competition in Kenya’s vehicle market increasingly revolves around purchase prices, vehicle specifications, financing options and the availability of spare parts and after-sales support.
The growing presence of Chinese manufacturers highlights the intense competitive pressure facing established distributors such as Isuzu, particularly in commercial vehicles, where acquisition costs and operating expenses drive purchasing decisions.
The passenger vehicle segment presents another potential growth frontier, particularly as manufacturers such as BYD seek to establish themselves through electric and hybrid vehicle offerings.
However, the KMI figures do not break down sales by engine technology, meaning the extent to which electric vehicles are contributing to the increase cannot be established from the available data.
The growth in purchases of Chinese vehicle brands coincided with a recovery in the showroom vehicle market, supported by renewed road construction activity and improving access to credit for businesses seeking to acquire trucks and other capital equipment.
Isuzu East Africa, the market leader, has attributed the industry’s expansion this year largely to the government’s mobilisation of Sh139 billion to settle contractors’ bills and restart stalled road projects.
“Industry performance was primarily propelled by government fiscal intervention-specifically the mobilization of Sh139 billion to clear contractor bills and restart road projects, which spurred heavy commercial vehicle demand,” Isuzu said in the KMI report for September.
The payments have eased cash-flow pressures on road contractors, some of whom had abandoned projects or faced the risk of losing vehicles and equipment financed through bank loans.
The State Department for Roads’ pending bills fell 23.5 percent to Sh98.17 billion in the financial year ended June, extending a decline from the Sh166.76 billion peak recorded in 2023/24.
The arrears declined by Sh30.19 billion in the latest financial year, following a Sh38.40 billion reduction in the previous year, according to the latest budgetary review report.
The recovery also came at a time bank borrowing costs were falling, potentially making it easier for businesses to finance trucks, delivery fleets and other vehicles used in their operations.
Central Bank of Kenya data shows the weighted average commercial lending rate fell to 14.34 percent in August 2026 from 15.17 percent a year earlier, extending a decline from the 17.22 percent peak recorded in November 2024.
The decline has potentially reduced the cost of servicing loans for businesses and individuals purchasing vehicles through bank financing and asset-finance arrangements.