Kenya and Germany have restored their agreement to boost Kenya’s automotive sector, focusing on capacity development, new technology assembly, and green mobility options.
This was announced by Germany’s Deputy Ambassador to Kenya and Counsellor for Trade, Alexander Fierley, when he visited the Kenya Vehicle Manufacturers (KVM) plant in Thika.
He commended CFAO Mobility Kenya for being at the vanguard of encouraging local car assembly through its investment in KVM. Fierley emphasized Germany’s dedication to creating partnerships that spur innovation and economic growth.
“Germany recognizes the core role of the automotive sector in driving economic growth. Our renewed partnership with Kenya aims at enhancing inter-linkages between our sectors, encouraging innovation and technology transfer, and building local manufacturing and regional competitiveness. We welcome KVM as a move in the right direction,” Fierley stated.
The new alliance is coinciding with KVM resuming local assembly of Volkswagen models, including the Touareg, Tiguan, and T-Cross, on a Completely Knocked Down (CKD) basis. It is a new initiative towards localization, job creation, and technology transfer in Kenya’s auto industry.
CFAO Mobility Kenya Managing Director Arvinder Reel welcomed the Deputy Ambassador and the new partnership.
“As CFAO Mobility, our investment in KVM is a demonstration of our confidence in the Kenyan automotive industry and our determination to contribute to the development of the country’s economic growth. Through the investment, we are creating additional job opportunities, allowing knowledge transfer from global producers, enhancing SMEs through local content, and making cars more accessible to Kenyan consumers,” Reel said.
The partnership is in line with the close connection between Germany and Kenya, with CFAO Mobility Kenya pledging to continue driving prospects and value addition along the automotive value chain.
The collaboration is poised to open up opportunities for new investment, innovation, and growth in the market as KVM expands its manufacturing capacity.
KVM currently manufactures a broad range of established brands in Kenya, including Mercedes Trucks and Buses, Volkswagen, Sinotruk, Tata, Caetano-Renault, Hyundai, JMC Trucks and Pickups, BasiGo EV buses, Mobikey MAN trucks and buses, Foton, GB Auto-Eicher, Kinglong vans, and IEA-UD trucks.
