A skeletal trailer at Kenya Vehicle Manufacturers in Thika Town. [Photo: kvm.co.ke]
French carmaker Peugeot SA has started local assembly of its car brands in Thika, becoming the latest multinational to produce vehicles in Kenya.
Thika-based Kenya Vehicle Manufacturers (KVM) started assembling Peugeot cars last week in a deal that has seen Peugeot partner with Urysia in the assembly of the 508 and the 3008 passenger car models.
The Peugeot 508 is a large family car launched in 2011 to replace the Peugeot 407 as well as the larger Peugeot 607 for which no more direct replacement is scheduled. The 3008 is a small SUV that was named 2017 Car of the Year in Geneva Switzerland in March.
Both models are expected to sell at a price above Sh4million. The history of Peugeot in Kenya goes way back to the country's independence when many Kenyans then preferred the Peugeot car model.
Peugeot's re-entry comes barely a year after German carmaker Volkswagen opened a new assembly in Thika. The company ceased its completely knocked down (CKD) assembly in 2004 and thereafter severed links with its franchise holder, Marshalls East Africa, three years later.
Mombasa-based Associated Vehicle Assemblers (AVA) and KVM are the only facilities in the country that offer contract production, with General Motors East Africa running a facility exclusively for its Isuzu brands.