Kenya Vehicle Manufacturers (KVM), based in Thika, has resumed production of Volkswagen models including the Touareg, Tiguan, and T-Cross under a Completely Knocked Down (CKD) arrangement. This move is expected to enhance localization, create jobs, and facilitate the transfer of modern automotive technologies into the Kenyan market.
During a recent visit to KVM, Germany’s Deputy Ambassador and Trade Counsellor, Alexander Fierley, highlighted the renewed cooperation between Kenya and Germany in the automotive sector. He noted that this collaboration aims to strengthen skills development, support the adoption of modern assembly technologies, and promote greener mobility solutions.
“Germany recognizes 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 stated.
KVM, which is majority-owned by CFAO Mobility Kenya, already assembles a variety of vehicle brands for the local market, including Mercedes-Benz trucks and buses, Sinotruk, Tata, Hyundai, and electric buses from BasiGo. The addition of Volkswagen models expands KVM’s multi-brand portfolio and reinforces 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 the growth of SMEs through local content input, and availing even more affordable vehicles to the Kenyan consumer,” said Arvinder Reel, Managing Director of CFAO Mobility Kenya.
Industry analysts believe that increased German involvement could attract further investment and encourage more manufacturers to shift to local assembly, aligning with the government’s industrialization agenda. Fierley emphasized that this collaboration is expected to unlock new opportunities for investment, innovation, and market development within Kenya’s automotive industry as KVM enhances its production capacity.
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