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Why Invest in Completely Knocked Down Assembly (CKD)
Kenya is East Africa’s rising automotive hub, driven by government incentives, growing demand, and regional connectivity. TrakGemini Consulting helps investors and OEMs leverage Completely Knocked Down (CKD) assembly to cut import costs, boost local manufacturing, and support Kenya’s Vision 2030.
Through Legal Notice 84 (2019) and Legal Notice 112 (2020), the Ministry of Industrialization, Trade, and Enterprise Development offers tax exemptions, making CKD assembly far more cost-effective than Fully Built Units (FBUs).
Why CKD?
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Jobs: Creates local employment.
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Innovation: Drives technology and skills transfer.
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Local Growth: Strengthens supply chains.
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Affordability: Lowers vehicle prices.
Discover the tax savings for CKD assembly by vehicle type below and unlock Kenya’s automotive potential with TrakGemini.
Motorcycles and 3 Wheeler Vehicles - EVs
Motorcycles and three-wheelers benefit from a reduced import duty rate under the EAC Duty Remission Scheme. Additionally, electric motorcycles are exempt from Excise Duty and VAT, while internal combustion engine (ICE) models remain subject to these taxes.
Passenger Vehicles
Passenger vehicles including sedans, SUVs, and D-Cab pickups enjoy the same CKD assembly tax incentives, regardless of their propulsion type (electric or internal combustion).
Commercial Trucks
Commercial Trucks for movement of goods enjoy the same CKD assembly tax incentives, regardless of their propulsion type (electric or internal combustion).
Busses and Vans
Electric passenger buses, including minivans, enjoy additional VAT incentives over their ICE counterparts, complementing existing CKD assembly incentives to promote green mobility and sustainable transport.
