Kenya’s motor assembler resumes Volkswagen production

Thika-based assembler is producing Volkswagen Touareg, Tiguan, and T-Cross models

by JACKTONE LAWI

Business22 August 2025 - 08:02

In Summary

The Thika-based assembler is producing Volkswagen Touareg, Tiguan, and T-Cross models under a Completely Knocked Down (CKD) arrangement.
Industry players say the move is expected to boost localisation, create jobs and transfer modern automotive technologies into the Kenyan market.

(From left) General Manager, Kenya Vehicle Manufacturers, Moses Abiero, Deputy Head of Mission, Head of Economic Affairs, German Embassy, Alexander Fierley, Economic Affairs, Economic Cooperation & Development, German Embassy Pius Ogola Ongoo and CFAO Mobility Managing Director, Arvinder Reel, during the visit to KVM, where Kenya and Germany renewed cooperation aimed at strengthening the local automotive sector.

Kenya Vehicle Manufacturers (KVM) has resumed the assembly of Volkswagen models in a fresh push to deepen ties with Germany.

The Thika-based assembler is producing Volkswagen Touareg, Tiguan, and T-Cross models under a Completely Knocked Down (CKD) arrangement.

Industry players say the move is expected to boost localisation, create jobs and transfer modern automotive technologies into the Kenyan market.

During a visit to KVM, Germany’s Deputy Ambassador and Trade Counsellor, Alexander Fierley said the development comes amid renewed cooperation between Kenya and Germany in the automotive sector.

He noted that the collaboration aims to strengthen skills development, support the adoption of modern assembly technologies, and promote greener mobility solutions.

“Germany recognises the critical role that the automotive industry plays in driving economic development. Our renewed cooperation with Kenya seeks to build stronger linkages between our industries, foster innovation and technology transfer, while supporting the country’s economic ambitions,” Fierley said.

KVM, majority-owned by CFAO Mobility Kenya, already assembles a wide range of vehicle brands for the Kenyan market, including Mercedes-Benz trucks and buses, Sinotruk, Tata, Hyundai and electric buses from BasiGo.

The addition of Volkswagen models broadens its multi-brand portfolio and strengthens Kenya’s position as a regional hub for vehicle assembly.

“Through our investment at KVM, we are providing more job opportunities to Kenyans, offering innovation and skills transfer from global OEMs, supporting growth of SMEs through local content input, and availing even more affordable vehicles to the Kenyan consumer,” said CFAO Mobility Kenya Managing Director, Arvinder Reel.

Industry analysts say the renewed German involvement could help attract further investment and encourage more manufacturers to shift to local assembly, aligning with the government’s push to develop the automotive sector under its industrialisation agenda.

Fierley said the collaboration between Kenya and Germany is expected to unlock new opportunities for investment, innovation, and market development in the automotive industry as KVM continues to bolster its production capacity.