President Uhuru Kenyatta confirmed that Volkswagen (VW) will resume producing cars in Kenya by the end of 2016.
This is after the German international car manufacturer stopped car production in Kenya for about four decades.
VW will establish an assembly plant to initially produce its Vivo model, as it looks forward to sell more vehicles across the East African region.
Kenyatta and South Africa's VW Chief Executive Thomas Schafer, had earlier indicated the firm would establish an assembly plant at the Kenya Motor Vehicle Manufacturers limited in Thika, Kiambu County.
During Kenya's 53rd Jamhuri Day celebrations, Uhuru confirmed VW's assembly plant would begin with the Vivo, and expand to a range of vehicles, with the first car expected to be rolled out before the end of 2016.
"The first Volkswagen made in Kenya will roll off the assembly line later this month,'' Uhuru said Monday at the Nyayo National Stadium.
He added: "Dozens of global companies have recognized this opportunity and are setting up their regional and continental headquarters in Kenya."
Volkswagen is the second-biggest auto maker by sales in South Africa after Toyota.