Kenya Vehicle Manufacturers, the country’s oldest vehicle assembler, has restarted the production of Volkswagen models at its Thika plant, marking a fresh bid by the auto-maker to reclaim ground in a market dominated by used imports.
- •The facility is now turning out three models; the Touareg, Tiguan and T-Cross, in a move that signals renewed industrial cooperation between Kenya and Germany.
- •The push is aimed at sharpening technical expertise, expanding the range of locally built cars and positioning Kenya as a regional hub for assembly.
- •KVM’s revival comes nearly a decade after Volkswagen’s previous attempt to gain a foothold in Kenya faltered.
In 2016, the company introduced the Polo Vivo, but limited output and stiff competition from secondhand vehicles kept sales volumes low. This was the German auto giant’s second attempt after halting production of the Volkswagen Beetle in the 1970s.
This time, the rollout of a broader model lineup is designed to strengthen the automaker’s prospects in a market where demand for new cars is gradually rising.
The Thika plant, partly owned by CFAO Mobility Kenya, already produces a mix of vehicles that include Mercedes-Benz trucks, Tata units and electric buses built for local operators. The addition of Volkswagen expands the portfolio at a time when Kenya is trying to attract more manufacturers under its industrialization program.
The project is expected to create jobs, open opportunities for small and mid-sized parts suppliers and make new vehicles more affordable for buyers who have traditionally turned to imports.
Volkswagen’s renewed push in Kenya comes as the automaker navigates uneven global performance, where is encounters steady sales but tightening margins as it pours billions into electric vehicles and restructuring.
The company is betting that emerging markets can help offset weaker returns in North America and higher costs in Europe. By expanding assembly in countries like Kenya, Volkswagen is not just chasing local demand but also positioning Kenya as a distribution base for East Africa.