German automaker Volkswagen Group has announced plans to expand its operations in Kenya.
This emerged during a meeting between Prime Cabinet Secretary Musalia Mudavadi and Volkswagen Group executives led by Volkswagen South Africa Chief Executive Martina Biene on the sidelines of the 5th German–African Business Summit in Nairobi.
Mudavadi said Volkswagen Group’s commitment to scaling up passenger vehicle assembly in collaboration with Kenya Vehicle Manufacturers is set to rev up the automotive industry across Eastern Africa.
“During our engaging discussion, VW executives confirmed their intention to resume production in Kenya by year-end. Even more thrilling, VW South Africa plans to introduce five additional models, responding to robust market demand,” Mudavadi said.
He added that the expansion will be driven in partnership with Kenya Vehicle Manufacturers, a local carmaker backed by CFAO [Corporation for Africa & Overseas] Group as a major shareholder.
The German Africa Business Summit was launched on Tuesday in Nairobi, with Mudavadi, who is also Foreign Affairs Cabinet Secretary, saying the meeting serves as a vital platform to deepen Nairobi-Berlin collaboration, unlock new opportunities, and foster success for shared future.
The launch was headlined by Mudavadi and German Vice Chancellor and Minister for Economy and Climate Action Robert Habeck and brought together business leaders and policy makers from 40 countries to advance trade, investment and industry.
Trade PS Alfred K’Ombudo said as part of implementation of the Kenya—EU Economic Partnership Agreement, Kenya is advancing trade and investment opportunities in renewable energy, agriculture, healthcare, e-commerce and several other sectors.
Germany Ambassador Sebastian Groth said there were over 900 participants from 40 countries striving for new business opportunities.
PCS Mudavadi highlighted Kenya’s position as an economic powerhouse, with Kenyan financial institutions operating over 550 branches across the region.
“This showcases our role as a key economic hub on the continent. Kenya remains steadfast in its commitment to being the gateway to East Africa and the broader African market. Guided by our Vision 2030, we are transforming into a newly industrializing, middle-income economy,” Mudavadi said.
He added that Kenya is also working hand-in-hand with global partners to achieve the United Nations Sustainable Development Goals, particularly in clean energy, climate action, and inclusive growth.
“Collaborations with German enterprises are critical to realizing these shared ambitions. Our partnership with Germany transcends business, encompassing cooperation in areas like labor migration, climate resilience, education, and healthcare. Together, we are tackling some of the world’s most pressing challenges,” he added.
