The motor dealer has also pumped Sh120 million into AVA for tech upgrades and training.
President William Ruto commissioned the plant, which will employ 100 people directly and 500 indirectly.
CFAO Motors also plans to source parts locally through technology transfer and technical know-how.
“In our first year we target to assemble 350 vehicles, with plans for a progressive increase in line with the National Automotive Policy and rising market demand,” CFAO Chairman Dennis Awori said.
The addition of the Fortuner assembly line adds to CFAO Motors Kenya’s locally assembled vehicle portfolio after the recent merger with DT Dobie.
CFAO Motors now locally assembles the Land Cruiser LC79 series, the Hino trucks and buses, the Hilux single and double cab pickups, and the Toyota Hiace (mini-bus) at the AVA.
Others are the Mercedes-Benz trucks & buses, Hyundai trucks & Volkswagen passenger cars at the Kenya Vehicle Manufacturers assembly plant in Thika.
“The anticipated operationalization of the National Automotive Policy will without doubt push the automotive industry into an exponential growth in locally assembled vehicles,” CFAO Motors Kenya Managing Director Arvinder Reel said.