Kenya and Germany have announced the renewal of their collaboration to support Kenya’s automotive sector, emphasizing skill development, modern assembly technologies, and green mobility initiatives. This partnership was highlighted during a visit by Alexander Fierley, Germany’s Deputy Ambassador to Kenya and Trade Counsellor, to Kenya Vehicle Manufacturers (KVM) in Thika.
A Push for Local Manufacturing
Kenya Vehicle Manufacturers has resumed the local assembly of Volkswagen vehicles under a level 2 completely knocked down arrangement. This includes models such as the Touareg, Tiguan, and T-Cross. These efforts underscore a renewed push toward localizing production, creating jobs, and advancing technology transfer in Kenya’s automotive industry.
KVM operates as a multi-brand assembler with an extensive portfolio, including brands such as Mercedes, Hyundai, Tata, Sinotruk, Foton, and the BasiGo electric bus. This diverse range positions KVM to cater to various market needs, from public transportation to personal mobility and logistics, while also contributing to the growth of Kenya’s manufacturing sector.
Germany’s Commitment to Innovation and Growth
During his visit, Deputy Ambassador Alexander Fierley emphasized Germany’s commitment to fostering innovation and supporting economic development through partnerships with Kenya. "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 in supporting local manufacturing and regional competitiveness. We see KVM as a strategic step in the right direction", said Fierley.
CFAO Mobility Kenya at the Forefront
CFAO Mobility Kenya, a major stakeholder in KVM, has declared its investment in Kenya’s automotive industry as a testament to its confidence in the sector’s future and its commitment to fostering economic growth. The company noted that its contributions aim to generate employment, transfer skills from global original equipment manufacturers (OEMs), stimulate small and medium enterprises through local content, and provide more affordable vehicles to Kenyan consumers.
"We are proud to host the Deputy Ambassador of Germany and welcome the renewed partnership between these two countries. As CFAO Mobility, our investment in KVM signals to our confidence in the Kenyan automotive industry and commitment to support our country’s economic growth. Through our investment at Kenya Vehicle Manufacturers (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 the company.
A Roadmap for Growth and Sustainability
The renewed collaboration between Kenya and Germany is expected to unlock new opportunities for investment, innovation, and market development. As KVM expands its production capacity and deepens its focus on green mobility initiatives, stakeholders will be closely monitoring the introduction of more locally assembled models, the advancement of skills transfer, and the broadening of Kenya’s automotive ecosystem.
With Germany’s backing and the proactive involvement of companies like CFAO Mobility Kenya, the partnership aims to solidify Kenya’s position as a competitive player in the regional automotive market while fostering sustainable economic growth through innovation and green solutions.
