Industry News

Kenya and Germany Strengthen Automotive Partnership to Boost Local Manufacturing and Green Mobility

(From left) General Manager, Kenya Vehicle Manufacturers (KVM) - Moses Abiero, Deputy Head of Mission, Head of Economic Affairs German Embassy - Alexander Fierley, Economic Affairs, Economic Cooperation & Development, German Embassy - Pius Ogola Ongoo and CFAO Mobility Managing Director, Arvinder Reel during the visit at Kenya Vehicle Manufacturers (KVM) where Kenya and Germany renewed cooperation aimed at strengthening the local automotive sector.

Kenya and Germany have reaffirmed their commitment to deepening cooperation in the automotive sector, focusing on skills development, modern assembly technologies, and the promotion of green mobility solutions.

The renewed partnership was highlighted during a visit by Alexander Fierley, Germany’s Deputy Ambassador to Kenya and Trade Counsellor, to the Kenya Vehicle Manufacturers (KVM) plant in Thika.

Speaking during the visit, Fierley praised CFAO Mobility Kenya for its leading role in strengthening the country’s vehicle assembly capabilities through its significant investment in KVM. He emphasized Germany’s interest in fostering mutual partnerships aimed at promoting innovation, technology transfer, and economic growth.

“Germany recognizes the critical role that the automotive industry plays in driving economic development,” Fierley said. “Our renewed cooperation with Kenya seeks to build stronger linkages between our industries, foster innovation, and support the country’s ambitions for local manufacturing and regional competitiveness. We see KVM as a strategic step in the right direction.”

The strengthened collaboration comes as KVM resumes local assembly of Volkswagen vehicles — including the Touareg, Tiguan, and T-Cross — under a Level 2 Completely Knock-Down (CKD) arrangement. This move signals a renewed focus on localization, job creation, and technology transfer within Kenya’s automotive industry.

CFAO Mobility Kenya Managing Director, Arvinder Reel, expressed optimism about the renewed partnership, stating:

“Our investment in KVM reflects our confidence in Kenya’s automotive industry and our commitment to supporting the country’s economic growth. Through KVM, we are creating more job opportunities, driving skills transfer from global OEMs, supporting SMEs through local content input, and making vehicles more affordable for Kenyan consumers.”

The partnership is expected to unlock new investment opportunities, accelerate innovation, and strengthen Kenya’s position as a regional automotive hub. Currently, KVM handles a multi-brand portfolio that includes:

  • Volkswagen
  • Mercedes Trucks & Buses
  • Tata
  • Hyundai
  • Sinotruk
  • Caetano-Renault
  • JMC Trucks & Pickups
  • BasiGo EV Bus
  • Mobikey MAN Trucks & Buses
  • Foton, GB Auto-Eicher, Kinglong Vans, and IEA-UD Trucks

This collaboration also supports Kenya’s broader goals of green mobility adoption, aligning with global trends toward electric vehicles (EVs) and sustainable transportation.