Auto dealer Caetano Kenya targets Coast with French, Chinese trucks

Caetano Kenya Managing Director Aurelien Glay (right) and a customer Shuaib Ali Ahmed of Bash Hauliers Ltd in Mombasa. [Brian Ngugi, Standard]

Portuguese-backed vehicle distributor Salvador Caetano is deepening its presence in the country with French-built Renault trucks and Chinese Jiangling Motors Corporation (JMC) light-duty vehicles, betting on aggressive financing to capture a slice of Kenya's booming commercial vehicle market.

Caetano Kenya, which sold 32 vehicles in the first quarter of 2026 is relying on flexible credit terms and localised aftersales support to grow its share of the commercial segment.

“Together, we are making it easier for businesses to access dependable mobility solutions while ensuring that customers receive the support they need throughout the ownership journey,” Managing Director Aurélien Glay said at a customer event in Mombasa this week, where the firm outlined financing of up to 100 per cent of vehicle value over 96 months.

The French heavy-duty trucks and Chinese light-duty pickups are being pitched directly in a competitive market where Japan's Isuzu and Toyota brands, together control roughly 80 per cent of Kenya's new vehicle market.

Kenya's automotive industry is undergoing a structural shift, with new vehicle sales rising 23 per cent in the first half of 2026 to a record 7,819 units. Commercial vehicles – trucks, pickups and buses – accounted for the bulk of purchases, driven by activity in construction, logistics and agriculture. The Central Bank Rate has been cut to 8.75 per cent from 11.25 per cent a year earlier, boosting private sector credit growth to 9.3 per cent in May.

The coast region, anchored by the Port of Mombasa and the Standard Gauge Railway which carried 4.28 million tonnes of freight in the first half of 2026 – up 12.3 per cent year-on-year – has become a focal point for commercial vehicle distributors. Competitors are expanding aggressively: Isuzu East Africa is building a Sh3.1 billion ($24 million) parts centre in Machakos, while CFAO Motors Kenya is investing Sh500 million in a new Kisumu showroom.

Caetano's Mombasa push includes a mobile service van and factory-trained technicians to minimize downtime for fleet operators – a critical factor for logistics companies where vehicle availability directly affects revenue. The company is also preparing to introduce light-duty JMC electric trucks to the Kenyan market, targeting businesses seeking to reduce fuel costs amid the country's nascent shift toward cleaner mobility.

Dr Sylvia Agani, Caetano Kenya Commercial and Marketing Director, shares the expansion plans for the company. [Brian Ngugi, Standard]

The distributor's partnership model with financial institutions reflects a broader industry trend. Asset financing has emerged as a key driver of new vehicle sales, with lenders signing financing agreements with distributors. TransAfrica Motors, another assembler, has grown production from 200 to over 3,000 units annually since 2014, citing improved access to financing as a major factor.

Caetano's Managing Director acknowledged the competitive landscape but emphasized that partnerships with financiers and customers would be central to its growth strategy.

With Kenya's logistics and warehousing market forecast to grow at a 7.3 per cent compound annual rate through 2031, and infrastructure projects including the SGR extension to Malaba underway, demand for commercial vehicles is expected to remain robust.

Whether Caetano can translate its coastal push into meaningful market share gains will depend on its ability to convert financing partnerships into sustained sales volume against better-capitalized rivals.