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Home » Deal » Kenya and Germany renew cooperation for local automotive sector

Kenya and Germany renew cooperation for local automotive sector

Editor by Editor
21 August 2025
in Deal
Reading Time: 2 mins read
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(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.

(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.

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Kenya and Germany have reaffirmed their commitment to deepening their cooperation in supporting the local automotive industry to spur skills development, adoption of modern assembly technologies, and promotion of green mobility solutions.

This was revealed by Germany Deputy Ambassador to Kenya and Trade Counsellor, Alexander Fierley during his visit to the Kenya Vehicle Manufacturers (KVM) premises in Thika.

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Speaking during the engagement, the Deputy Ambassador hailed CFAO Mobility Kenya for taking the front seat in driving Kenya’s automotive assembly efforts through the investment in Kenya Vehicle Manufacturers (KVM) and underscored Germany’s interest in fostering mutual partnerships that promote innovation, and spur economic growth.

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

The moves comes as KVM resumed the local assembly of Volkswagen vehicles namely the Toureg, Tiguan, T-cross under the level 2 Completely Knock-Down (CKD) arrangement, signaling a renewed focus on localization, job creation, and technology transfer within Kenya’s automotive industry.

CFAO Mobility Kenya Managing Director, Arvinder Reel said: “We are proud to host the Deputy Ambassador of Germany and welcome the renewed partnership between these two countries. As CFAO mobility, our investment in KVM signals to our confidence in the Kenyan automotive industry and commitment to support our country’s economic growth.  Through our investment at KVM, we are providing more job opportunities to Kenyans, offering innovation and skills transfer from global OEMs, supporting growth of SMEs through local content input, and availing even more affordable vehicles to the Kenyan consumer.”

This visit is a demonstration of the strong partnership between Kenya and Germany and CFAO Mobility Kenya remains committed to using this gesture to boost value addition and creating opportunities within the automotive value chain.” The collaboration between Kenya and Germany is expected to unlock new opportunities for investment, innovation, and market development in the automotive industry as KVM continues to bolster its production capacity. Currently, KVM is a leading assembler, handling a multi-brand portfolio of leading reputable brands in Kenya including, Mercedes Trucks and Bus, Volkswagen, Sinotruk, Tata, Caetano – Renault, Hyundai, JMC Trucks & pickups, BasiGo – EV bus, Mobikey – Man trucks and Buses, Foton, GB Auto – Eicher, Kinglong van and IEA – UD trucks

Tags: CFAO Mobility KenyaCFAO MotorsDT DobieGermany
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