Isuzu East Africa has started local assembly of its sport utility vehicle, the mu-X, in what will lower the price of the models by at least Sh3.5 million, with the company achieving 100 percent local production.
The company has been importing the car since 2020, when it re-entered the passenger car business after relinquishing General Motors’ Chevrolet franchise in 2017.
Assembling the cars locally allows the dealer to benefit from tax incentives offered by the government to encourage local production, ultimately lowering its cost and enhancing its price competitiveness.
“The development supports the Buy Kenya, Build Kenya agenda and aligns with the Africa Continental Free Trade Area vision of strengthening regional manufacturing capabilities,” Isuzu said on Friday, when it took journalists on a tour of its Nairobi plant.
The company says a 3-litre diesel version of the SUV, which was previously sold at Sh13.5 million when it was imported fully built, is expected to be priced below Sh10 million on account of the tax savings.
A 1.9-litre diesel model of the SUV is expected to sell below Sh9 million, down from the previous Sh12 million when the units were imported fully built from Thailand. Final prices are yet to be confirmed.
The government exempts assemblers from the import duty of 35 percent levied on fully built vehicles.
Completely knocked down parts destined for assembly plants are also exempt from 20 percent to 35 percent excise duty levied on imports of fully built vehicles, depending on engine capacity and fuel type.
Assemblers also pay a lower import declaration fee of 2.5 percent, compared with the standard 3.5 percent. The two percent Railway Development Levy is also reduced to 1.5 percent for assemblers.
Isuzu said this is the first time the mu-X has been assembled outside Thailand. Isuzu mostly sells its namesake commercial vehicles (buses, pick-ups and trucks), with the SUV helping to boost its overall market share.
The company sold 35 units of the mu-X cars in the 10 months to October 2025, when its total orders stood at 5,387 units, according to data from the Kenya Motor Industry Association.
The dealer’s SUV models are competing against the likes of the Toyota Fortuner, which is retailing at Sh10 million. The price of the Fortuner, sold by CFAO Mobility Kenya, also fell significantly when its local assembly started in July 2023 at Associated Vehicle Assemblers in Mombasa.
Other models in the SUV category include the Mitsubishi Pajero (sold by Simba Corp), Toyota Prado (CFAO) and Ford Everest (Salvador Caetano Kenya).
