The Competition Authority of Kenya (CAK) has given its unconditional approval to CFAO Motors Kenya Limited’s acquisition of a majority stake in Kenya Vehicle Manufacturers Limited (KVM). The deal will see CFAO Motors increase its ownership in KVM to 98%, effectively taking control of the company.
The authority’s decision follows a thorough analysis of the proposed transaction, which concluded that it is unlikely to adversely affect competition in the market for the assembly and distribution of new motor vehicles. The CAK also determined that the deal poses no significant public interest concerns.

CFAO Motors, a subsidiary of Toyota Tsusho Corporation, is a major player in the automotive industry, involved in the distribution, retailing, and servicing of various vehicle brands. KVM, on the other hand, is engaged in the manufacture of both completely knocked down (CKD) and semi knocked down (SKD) vehicles.
The acquisition is expected to enable KVM to settle its outstanding debts and revamp its operations, potentially leading to job creation and increased competitiveness in the local automotive industry.
While the deal strengthens CFAO Motors’ position in the market, the CAK has assured that the merged entity will continue to face competition from other key players in the sector, such as Isuzu East Africa, Associated Vehicle Assemblers, and Trans-Africa Motors.
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