Isuzu launches locally assembled SUV, Mercedes overhauls flagship S-Class & more car news of the week

A week defined by policy shifts and industrial milestones, the Kenyan automotive landscape has pivoted from an import-heavy market to a budding manufacturing hub.

From the official rollout of the National E-Mobility Policy to a significant price correction for locally assembled luxury SUVs, here is what is new in cars this week.

Isuzu East Africa officially launched the locally assembled Isuzu MU-X luxury SUV on February 2, 2026.

This marks the first time the model has been manufactured outside Thailand.

Under the National Automotive Policy, the shift to local production has resulted in a 27 per cent reduction in retail prices due to tax incentives.

Now retailing at Sh9.9 million, the 3.0-litre variant has seen a price reduction from the Sh13.5 million previously charged for imported fully built units.

The 1.9-litre entry-level model is priced at Sh8.9 million.

Isuzu’s Nairobi plant now maintains a fully locally assembled product line for the first time.

The Ministry of Transport launched the National Electric Mobility (e-Mobility) Policy on February 3, 2026.

Cabinet Secretary Davis Chirchir introduced specialised green reflective number plates for all electric vehicles registered in Kenya.

These plates are intended to serve as a visual identifier as well as to facilitate future incentives, which may include priority lanes or reduced tolls.

The policy includes the zero-rating of Value Added Tax on electric buses, motorcycles, and lithium-ion batteries.

It also reduces excise duty to zero per cent for electric bicycles and motorcycles.

The initiative aims to reduce the national petroleum import bill, which currently stands at approximately USD5 billion annually.

Mercedes-Benz has updated its flagship S-Class to modify performance and technical specifications as of February 2026.

The overhaul includes modified autonomous driving systems and updated interior software. 

This release coincides with the 140th anniversary of the first patent for a gas-engine vehicle by Karl Benz.

Benz applied for the patent on January 29, 1886, and it was officially granted on November 2, 1886.

The update follows a global pivot toward improved hybrid and electric powertrains across the Mercedes-Benz product range.

Nissan announced on February 4, 2026, that the debut of the Tekton SUV has been rescheduled to mid-2026.

Initially scheduled for unveiling this week, the Tekton is a mid-size SUV inspired by the Nissan Patrol design and built on the CMF-B modular platform.

Featuring an electronic four-wheel-drive system, the Tekton is designed to compete in the high-growth SUV segments in India and Africa, featuring both turbo-petrol and hybrid powertrain options.

Following its late-January reveal, technical details for the Volvo EX60 electric SUV were released during the first week of February 2026.

The model features a 670hp powertrain and a range of 640km on a full pack.

Following this range capacity, the vehicle introduces Volvo’s first 800-volt electrical architecture, which allows for DC fast charging speeds of up to 370kW.

This system can add 340km of range in ten minutes

The EX60 also utilises a structural battery pack, where cells are integrated directly into the vehicle chassis to improve rigidity and energy density.

Additionally, the manufacturing process incorporates 'Megacasting' technology, replacing approximately 100 separate rear-underbody parts with a single aluminium component to reduce weight.

The interior features the debut of a built-in Google Gemini AI assistant for vehicle management and navigation.

• KRT 4x4 Challenge: February 7, 2026, at the Kona Baridi Resort. Spectator tickets are Sh1,000.

• Her Car, Her Rules: An automotive education workshop for women scheduled for February 7, 2026, at the Karen Amusement Home. Entry begins at 12:00 PM with tickets priced at Sh2,500.

• Delta Motorsports Championship Round 1: The first round of the championship will be held on February 21, 2026, at the Whistling Morans circuit.

• WRC Safari Rally Kenya: The 2026 edition is scheduled to begin on March 12, 2026, in Naivasha. The route focuses on stages around Lake Naivasha and excludes the Nairobi ceremonial start.