Chinese automotive giant Geely has signed a $3 billion deal (Sh390 billion) with Kenya to locally produce and assemble electric vehicles. Announced on 9 October 2026, this strategic partnership positions Nairobi as a future automotive hub for East Africa.
A deal unveiled by President Ruto himself
President William Ruto personally unveiled the plan at an official ceremony: Geely Auto, China's second-largest automaker by sales, commits Sh390 billion over several years to install electric vehicle assembly lines in Kenya. The agreement includes significant local production targets, with objectives for integrating locally manufactured components.
The deal covers both passenger vehicles and commercial vehicles — including electric buses and motorcycles, sectors where Kenyan demand is surging alongside the explosion of motorcycle-taxi platforms (boda-boda).
The quiet rise of Chinese automakers in Kenya
This landmark deal fits into a broader trend. According to Business Daily Africa, manufacturers such as Dongfeng are already quietly assembling vehicles in Kenya, while Chinese brands like BYD, Chery and SAIC Motors are taking market share from Japanese used-car importers — a segment that still accounted for 75% of Kenyan registrations in 2024.
Geely's strategy is clear: local assembly avoids duties on finished vehicles and unlocks access to AfCFTA trade agreements, of which Kenya is an active member.
East Africa as a bridgehead
The choice of Kenya is deliberate. Nairobi is the de facto regional capital for businesses operating in East Africa: logistics infrastructure, skilled workforce, access to EAC (East African Community) markets. The Geely deal could trigger a cascading effect across the region, potentially reaching Mauritius and Réunion through Indian Ocean trade corridors.
Why it matters
$3 billion is one of the largest foreign investments ever announced in Kenyan manufacturing. If the deal materialises at the announced pace, it will transform the country's industrial base and accelerate the transition to electric mobility across East Africa — with potential pricing effects across the entire region.
Sources: China Global South Project, Standard Media Kenya, Business Daily Africa — 9 October 2026.