Simba Corp Invests $7.7 Million in Kenya EV Assembly Line to Expand Local Production.

Kenya-based Simba Corporation has announced a Sh1 billion ($7.7 million) investment to establish a dedicated electric vehicle (EV) assembly line at its Mombasa facility through its subsidiary, Associated Vehicle Assemblers (AVA). The move reflects the company's long-term commitment to expanding local EV production while supporting Kenya's ambition to become a regional hub for electric mobility.

 
The investment will finance the installation of specialized EV assembly equipment, modifications to the existing factory layout, and extensive training for technicians. According to the company, the project is being funded entirely through internal resources, without relying on external borrowing.
 
AVA stated that the new assembly line has already begun producing electric vehicles for several customers. Current production includes electric hatchbacks and 16-seater electric vans for Rideence Africa, which distributes Beijing Henrey's Xiaohu electric vehicles in Kenya. The company is also assembling electric three-wheelers for Car and General as well as electric buses for BasiGo, one of Kenya's leading electric bus providers.
 
The facility is expected to expand further following a partnership announced in late 2025 between Chinese automaker Dongfeng, AVA and local distributor ePureMotion. The collaboration aims to locally assemble the ePureCitie electric hatchback before introducing additional electric passenger and light commercial vehicles for both private and commercial customers.
 
Simba Corp also plans to begin assembling electric models under the MG (Morris Garages) brand at the Mombasa plant. The company has previously imported MG vehicles as fully built units, but local assembly is expected to make the vehicles more affordable while creating employment opportunities and strengthening technical expertise within Kenya.
 
The investment comes as Kenya continues to encourage domestic EV manufacturing through a range of tax incentives. Locally assembled electric vehicles are exempt from the 35 percent import duty imposed on fully built imported vehicles. In addition, the government has reduced excise duty on EVs from 20 percent to 10 percent and removed value-added tax on qualifying electric vehicles, measures aimed at lowering costs and accelerating adoption.
 
AVA says the investment represents more than an expansion of assembly operations. The company views it as an important step toward eventually manufacturing vehicles in Kenya, supported by a workforce of trained technicians and modern production technology. It is also in discussions with several local and international EV manufacturers regarding future production partnerships.
 
Founded in 1948, Simba Corporation has grown from a used-car dealership into one of Kenya's largest diversified family-owned business groups, with operations spanning automotive, hospitality, finance and trade. Today, AVA assembles vehicles for 23 passenger and commercial vehicle brands, including both internal combustion engine and electric models.
 
Kenya's electric vehicle market is still developing but continues to gain momentum. Industry data shows more than 9,000 EVs were registered in the country by the end of 2024, with electric motorcycles accounting for the majority of the fleet. At the same time, other industry players are also expanding local production capacity, reflecting growing confidence in the country's emerging electric mobility sector and its potential to serve the wider East African market.

Posted on : 02 Jul,2026 | News Source : https://www.billionaires.kenya/

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