The reentry of Volkswagen assembly plant into the Kenyan market will help the government create more jobs, President Uhuru Kenyatta has said.
Uhuru said the return of the Volkswagen plant is in line with the government’s promise of growing the manufacturing industry.
Among the models to be assembled are light trucks and a passenger car, the Vivo – will be the first to be assembled locally. This will expand into a fully-fledged assembly operation producing a range of vehicle makes.
The first vehicle is expected to be rolled out before end of the year.
Uhuru spoke at State House, Nairobi, on Wednesday when Volkswagen South Africa said it will establish an assembly plant to produce cars at the Kenya Vehicle Manufacturers Limited in Thika.
The company, which took over the VW franchise from CMC Holdings, has been importing fully built German-made vehicles from markets such as South Africa.
“I am happy to welcome back the largest car manufacturer currently in the world, back to Kenya. This is a milestone in my administration’s determined push to grow the manufacturing base and transform Kenya into an industrialised nation,” Uhuru said.
“We are a country of young people so many of you may not be aware that Kenya in the 1970s used to assemble Volkswagen vans, microbuses and the famous Kombi.”
Volkswagen South Africa MD Thomas Schäfer said the German multinational will start assembling some of its models at the Thika plant. “We were in Kenya in the 1960s and 1970s, and resuming operations here is part of our Africa strategy. The Volkswagen Group is excited to be here and we will start operations immediately,” he said.
Schäfer signed an agreement with the government to launch Volkswagen local assembly at the Thika plant in which the state has a 35 per cent stake.
“This means decent jobs for Kenyans and their families. It means joining not only consumption of imported goods but their production here at home so that our hard-earned money uplifts more Kenyans,” Uhuru said.
The President added that the government is working on expanding light manufacturing such as the machinery, automotive assembly, chemicals, pharmaceuticals and, eventually, heavy industrial manufacturing.
“Our aggressive investment in infrastructure, including rail, roads and energy is being welcomed by major investors such as Volkswagen who realise that Kenya is now a more competitive investment destination, and are responding by pursuing opportunities here,” Uhuru said.
He said he always travels with an aim to increase investment by showing the world the opportunities available in Kenya. “Attracting world-class companies like Volkswagen provides a lure and anchor to other investors. It leads to the growth of our manufacturing base and jobs, and increased national wealth,” Uhuru said.