Peugeot Group has signed an assembly license agreement with Urysia Limited, the local Peugeot agent. The agreement is as a result of President Kenyatta’s state visit to France and Germany last year, which partly yielded the investment by Volkswagen in assembling its Polo Vivo range in Thika.

The agreement will see Peugeot assemble five models in Kenya- including the 508 and 3008 range that are among the most recent of its range in order to meet the aspirations of Kenyans to have quality, modern and reliable vehicles at affordable prices.

The location of the plant has not yet been disclosed though, it is expected to create jobs for the young people, teach them new skills as well as hasten the growth of associated industries – all of which will encourage even more investment, not just in this sector but in others too.

Peugeot plans to move progressively from light assembly activities to more intensive activities, integrating more local share. This increase is justified by the need to train the operators but also to build a network of local suppliers capable of meeting the quality requirements of the manufacturer.

In 2016, the manufacturing output grew 3.5 per cent signaling revival of Kenyan industry and return to regional dominance. In the same year, Wrigley invested 5.8billion in a plant in Machakos, Volkswagen plant opened in Thika and Pan-Paper plant was revived towards the end of that year.

Volkswagen Polo Vivo is already in the local market with DT Dobie displaying it in its showroom along Lusaka road. The five door hatchback is worth KES1.65 million comes with a warranty of three years and buyers can sign up for the KES9, 000 three year service plan that will be done by DT Dobie’s engineers and technicians.

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