Adil Popat's Simba Corp commits $7.7 million to Kenya electric vehicle assembly line

Adil Popat's Simba Corporation, one of Kenya's oldest and most diversified family-owned business groups, is investing Sh1 billion ($7.7 million) in a dedicated electric vehicle assembly line at its Mombasa plant through subsidiary Associated Vehicle Assemblers, positioning the 77-year-old conglomerate to capture growing demand for locally assembled electric vehicles as Kenya consolidates its ambition to become East Africa's electric mobility hub.

AVA, one of Kenya's largest contract vehicle assemblers, said the investment covers specialized EV assembly equipment, factory layout modifications, technician training and certification. The company said it is funding and building the line entirely from its own resources without external debt.

"Associated Vehicle Assemblers, part of the Simba Corp portfolio, is committing an estimated Sh1 billion to a dedicated electric vehicle assembly line, with 60 trained technicians already on the floor," Simba Corp told Business Daily. "It is also the platform for a longer-term move toward full vehicle manufacturing in Kenya, and ties directly into the National Automotive Policy and its implementation."

The new EV line is already producing vehicles for several clients. AVA has begun assembling electric hatchbacks and 16-seater electric vans for Rideence Africa, the dealer behind Beijing Henrey's Xiaohu electric cars in Kenya, using completely knocked-down kits supplied by Beijing Henrey alongside kits from Chinese commercial vehicle manufacturer Jiangsu Joylong. It also assembles electric three-wheelers including tuk-tuks for Car and General, and electric buses for BasiGo, Kenya's largest electric bus supplier.

In December 2025, Chinese automotive giant Dongfeng announced plans to begin local assembly of electric passenger vehicles through a partnership with AVA and local distributor ePureMotion, starting with the ePureCitie compact electric hatchback before expanding into additional passenger and light commercial electric vehicles targeting individual buyers, fleet operators and logistics companies.

Simba Corp itself plans to begin assembling its own electric vehicle models at the facility, starting with passenger cars under the MG — Morris Garages — brand it has historically imported as fully built units from China.

"Assembling the MG range locally with AVA lets us put modern electric vehicles within reach of the Kenyan customer, and do it with local jobs and local skills," Dinesh Kotecha, Simba Corp's group chief executive, said.

The investment is timed to capture a significant tax advantage. EV assemblers in Kenya are exempt from the 35 percent import duty levied on fully built units shipped into the country. The government has also reduced excise duty on EVs from 20 percent to 10 percent and exempted them from value-added tax. Local assembly further allows buyers to avoid the depreciation schedule that the Kenya Revenue Authority applies to fully built EV imports — a schedule that generates higher taxes for EVs than for older second-hand petrol vehicles because most EVs arrive new, pushing fully imported prices beyond many Kenyan buyers' reach.

"AVA is building for the e-mobility sector before the market demands it," AVA's acting managing director Daniel Moki said. "We are sourcing current-generation technology and training a team to bring partners into production from day one. The bigger horizon is moving from assembly to manufacturing."

Simba Corp was founded in 1948 by the late Abdul Karim Popat as a used-car dealership and has grown over seven decades into a multi-sector conglomerate spanning motor vehicles, hospitality, finance and trade. Adil Popat, son of the founder, chairs the group and serves as group executive chairman, having previously served as chief executive from 2007 until handing the CEO role to Kotecha. The group currently operates assembly lines for 23 internal combustion engine and electric vehicle brands at AVA's Mombasa facility spanning passenger cars, trucks, buses and three-wheelers.

AVA is in discussions with additional local and international EV firms about future production partnerships as it scales capacity ahead of projected demand growth.

The Sh1 billion investment comes as Kenya's EV market remains at an early stage of development. The country had 9,144 registered EVs at the end of 2024, according to the Electric Mobility Association of Kenya. Of the 14,750 EVs registered between 2018 and 2024, only 326 were passenger cars, with e-motorcycles and bicycles dominating the sector at 90 percent of the total fleet.

Toyota dealer CFAO Mobility Kenya has separately invested Sh2.4 billion ($18.5 million) in its subsidiary Kenya Vehicle Manufacturers, signalling that the local assembly sector as a whole is scaling capital investment simultaneously across multiple operators.

Simba Corp's move positions it alongside that broader institutional push at a moment when Kenya's government, its tax incentive architecture and its regional neighbors are all pointing toward electric mobility becoming a structural rather than niche feature of East Africa's automotive market.