VW sign MoU with Kenya government on vehicle assembly

Kenya is back in the business of assembling vehicles after Volkswagen South Africa signed a deal with the Government to assemble vehicles in Thika. This follows the signing of a deal to use the Kenya Vehicle Manufacturers in Thika to assemble its popular models beginning with the VW Vivo.
The first fully Kenya assembled Vivo is expected to roll out of the Thika plant by December this year.

Making the announcement in Nairobi when officials officials of Volkswagen AG paid him an official visit at the State House, Nairobi, President Uhuru Kenyatta of Kenya said the plant will then expand into a fully fledged assembly operation producing a range of vehicle makes.

“I am happy to welcome back the Volkswagen Group, currently the largest car manufacturer in the world, back to Kenya,” said President Kenyatta at State House, Nairobi, where he witnessed the signing of the agreement between Kenya and Volkswagen.

The German automaker used to operate in Kenya in the1960s until 1977 and used to assemble Volkswagen vans, microbuses and the famous Kombi. President Kenyatta said the return of VW is a sign of what the economic transformation Kenya has undergone. He said the venture will create jobs for many Kenyans.

“This is a milestone in my administration’s determined push to grow the manufacturing base and transform Kenya into an industrialized nation. We are in the early stages of transformation,” said the President. He said the new development was proof of the success of the four initiatives the government has focused on to transform Kenya.

The areas of focus include investments in infrastructure including rail, roads and energy.  “This is being welcomed by major investors such as VW who realize that Kenya is now a more competitive investment destination, and are responding by pursuing opportunities here,” said the President.

The second area of focus is the reforming of the regulatory and business environment under the Ease of Doing Business Programme. Thirdly, what government will put emphasis on is to grow effective linkages between foreign direct investment and local enterprises.

He said attracting world-class companies like Volkswagen provides a lure and anchor to other similar investors. “When I came to office, I knew that Kenya needed to become a strong bridge for investment, ideas and regional stability if we are to transform into a wealthy middle class economy,” said the President.

Responding, Thomas Schafer, the chief executive officer of VW South Africa said  his company is excited to be back in Kenya. In his words, “We were in Kenya in the 1960 and 70’s and resuming operations here is part of our Africa strategy” He noted that Kenya has a huge potential to be a vehicle exporting country that serves the wider Eastern Africa region. “The Volkswagen Group is excited to be here and we will start operations immediately,” he said.