President Uhuru Kenyatta with Volkswagen South Africa boss Thomas Schaefer.[Photo/PSCU]
The German carmaker Volkswagen is on its way to doubling production in Kenya.
The firm is also set to introduce a new model at its plant in Thika which will be a huge boost for President Uhuru Kenyatta’s Big Four action plan.
VW South Africa head Thomas Schaefer told President Kenyatta at a meeting in the South African town of East London that the firm was planning on producing a second model in Kenya, possibly a hatchback (small SUV), while doubling production of the VW Polo Vivo to at least 300 vehicles.
On the President’s agenda is the industrialization agenda which aims at growing the automotive industry acting as part of the Big Four plan of delivering affordable housing, universal healthcare for all, food and nutrition, security and increased manufacturing.
President Kenyatta welcomed VW’s commitment to ensure growth of its Kenya facility, stating that the country had a ready market for cars produced in Kenya, provided that they were sold at affordable prices.
“We will walk this journey with you to produce affordable cars. Our plea is that you price these vehicles reasonably,” the President said.
Schaefer is also responsible for VW’s operations in Africa. His vision is to see an operation that will pull through in Kenya in the east, Nigeria in the west, and South Africa. Kenya’s major interest is to grow a major auto manufacturing plant which is meant to meet the supply needs of East and Central Africa.
Last year, French carmaker Peugeot started manufacturing cars in Kenya, while Japanese vehicle manufacturing giant Toyota started assembling some models in Kenya in 2015.
President Kenyatta met Schaefer in the margins of meetings with the South African ruling party ANC. Enhancing relations between the two countries, especially manufacturing and agriculture to grow jobs for youth in both countries, is at the heart of talks he is holding.