For most of 2026, one stock has quietly stolen the show at the Nairobi Securities Exchange (NSE). By early September, Car & General (K) Plc had risen roughly 488% since January, making it the strongest year-to-date performer on the bourse. 

The rally is striking, but the more interesting story is what it reveals about East Africa’s changing economy. 

For decades, Car & General was known primarily as an automotive distributor, selling spare parts, tyres, motorcycles, three-wheelers, and generators. Its transformation has increasingly been driven by a strategic investment that connected its traditional distribution business to a growing financial trend: asset finance for the informal economy. 

A Regional Business Built Over Decades 

Car & General was established in 1936 as Car & General Equipment Limited. Initially based in Nakuru, it imported and distributed automotive parts before relocating to Nairobi as the business expanded. 

In 1950, it became a public company and listed on what was then the Nairobi Stock Exchange. It is now one of East Africa’s oldest continuously listed companies. 

Its regional expansion also began early. By the mid-1960s, its operations in Kampala and Dar es Salaam had developed into separate subsidiaries. Today, Uganda and Tanzania account for more than half of group sales, giving the company exposure to multiple markets and helping cushion it against weaker conditions in Kenya during 2022–2024. 

That regional footprint has become increasingly important as trade, mobility and consumer markets across East Africa become more interconnected. 

From Moving Goods to Financing Livelihoods 

Under chief executive Vijay Gidoomal, Car & General expanded its trade-and-workshop business around motorcycles, three-wheelers and generators from brands including TVS, Piaggio and Cummins. 

The business remains the group’s largest revenue contributor and has been growing strongly. Kenyan motorcycle sales averaged 12,000 units a month in 2026, compared with 7,000 a year earlier. Sales also increased by 40% in Kenya, 35% in Uganda and 22% in Tanzania. 

These figures point to something larger than rising motorcycle sales. Across East Africa, motorcycles have become important productive assets for transport operators, traders and delivery businesses. 

Car & General’s next move was to build on that relationship between mobility and livelihoods. 

The Investment That Changed the Numbers 

In 2017, Car & General took a stake in Watu Credit, a lender that finances motorcycles, smartphones and other assets for predominantly informal-sector borrowers across Africa. 

Car & General has since increased its holding to 29%. What began as a diversification investment has become the group’s most important source of earnings. 

In the six months to June 2026, Watu’s profit contribution jumped 382% to KSh2.04 billion, accounting for roughly 71% of Car & General’s pre-tax profit. Group revenue rose 30% to KSh15.64 billion, while profit after tax increased by more than 300% to a record KSh2.60 billion. 

The shift is significant: Car & General is no longer benefiting only from selling the assets that support economic activity. Through Watu, it is also helping finance those assets. 

What This Says About the Informal Economy 

Large parts of East Africa’s workforce and small-business economy operate outside traditional banking channels. For these customers, access to credit can determine whether they can acquire a motorcycle, expand a delivery operation, or invest in an income-generating asset. 

For many borrowers, a financed motorcycle is more than a consumer purchase; it is a tool for generating income. This creates a direct link between financial inclusion and economic activity. 

Car & General’s model brings the two sides together: one part of the business distributes productive assets, while another helps customers finance them. 

A Window into Regional Economic Transformation 

The Car & General story matters beyond the company itself. East Africa’s economic transformation is increasingly being shaped by businesses operating across traditional sector boundaries. Mobility is connecting with finance, informal commerce is becoming a market for financial services, and established companies are using regional distribution networks to enter new areas of growth. 

Car & General is a useful case study because it did not abandon its traditional business. Instead, it built on a customer and distribution network developed over decades. 

Its operations across Kenya, Uganda, Tanzania and Rwanda also illustrate the value of regional scale as the East African Community (EAC) pursues deeper economic integration. 

The Rally Is the Signal 

The 488% rise may ultimately prove temporary, but it has drawn attention to a bigger change. 

A company established nearly 90 years ago to distribute automotive parts has evolved into a business positioned at the intersection of regional mobility, informal commerce and financial inclusion. 

For policymakers and investors, the more important story may be what sits behind the rally: an East African economy in which access to finance, mobility and informal enterprise are becoming increasingly interconnected.