Cooperation for Africa and Overseas (CFAO) Motors Limited Kenya has commenced assembly of the Toyota Fortuner SUV through the CKD (completely knocked down) kit route.
The 120 million dollars vehicle Assembly plant was commissioned Saturday by President William Ruto at Miritini, in Mombasa City.
Launched Toyota Fortuner Assembly Line, Miritini, Mombasa County. pic.twitter.com/RJGBW1NzU6
— William Samoei Ruto, PhD (@WilliamsRuto) July 29, 2023
This marks a significant milestone for the country’s automotive industry and demonstrates its commitment to developing local manufacturing capabilities.
Speaking at the launch, the President said the government has instituted policies and measures to create an environment for the growth of manufacturing.
“We need investments to create opportunities, uplift communities and strengthen the economy.”
He challenged players in the automotive sector to develop affordable cars for low-income earners.
CFAO Motors Kenya said this was Kenya’s first CKD SUV assembly in 25 years – The Toyota Fortuner.
The wait is finally over! H.E. @WilliamsRuto has officially commissioned Kenya’s first CKD SUV assembly in 25 years – The Toyota Fortuner.
— Toyota by CFAO Motors Kenya (@ToyotaCFAOKE) July 29, 2023
This CKD assembly is expected to create jobs and boost the local economy, while also providing consumers with high-quality, locally-assembled vehicles.
What is the Completely Knocked Down (CKD) process
The Completely Knocked Down (CKD) process is a strategy used by manufacturers to save on taxes in the destination country.
This process involves importing vehicles as “knocked-down” parts or kits, rather than as fully assembled vehicles.
By importing vehicles in this manner, manufacturers are able to take advantage of lower tax rates and reduce their overall costs.
This approach is commonly used by automotive manufacturers to increase their competitiveness in foreign markets.
The Toyota Fortuner is a popular SUV model known for its durability and off-road capabilities, making it well-suited for the Kenyan market.
“Today’s milestone of local assembly with the Toyota Fortuner reinforces our unwavering pledge to the government’s manufacturing agenda,” said CFAO Motors Kenya.