Volkswagen to Double Output of Polo Vivo Models in Kenya

German automaker Volkswagen (VW) plans to double output at its Kenyan assembly plant and plans to introduce a new model at its plant in Thika.

“VW South Africa head Thomas Schaefer told President Kenyatta at a meeting in the South African town of East London that the firm was exploring producing a second model in Kenya, possibly a hatchback (small SUV), while doubling production of the VW Polo Vivo to at least 300 vehicles,” announced State House in a statement.

VW set up in Kenya in 2016, and its first car rolled off the ramp less than a year later.

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.

“We will walk this journey with you to produce affordable cars. Our plea is that you price these vehicles reasonably,”   said Kenyatta.

“We are very keen that our youth, a highly educated group, can get to work in a company of great technological sophistication as VW, which is why we welcome your plans to go full throttle to increase production,” he added.

The government of Kenya in 2015 introduced tax incentives for local car manufacturers guaranteeing at least 40 percent of the annual car lease contracts would go to locally assembled cars.