Peugeot follows Volkswagen into Kenya

Peugeot follows Volkswagen into Kenya

The PSA group have just finalized an agreement to begin assembling the new Peugeot 508 as well as the 3008 model in their new Kenyan Peugeot assembly plant

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The PSA group, the French manufacturer of Peugeot, Citroen and DS cars, and Urysia Limited, the long-standing Kenyan based importer and distributor of PSA vehicles in the country, have just finalized an agreement to begin assembling the new Peugeot 508 as well as the 3008 model in their new Kenyan Peugeot assembly plant. The Peugeot brand has been very successful in Kenya ever since its initial arrival in 1958, during this time Urysia Limited has been their sole franchise partner.

This agreement is the second of its type to be made by a European car manufacturer in the last 12 months, with Volkswagen, the German car maker, being the first to sign a similar agreement late last year, in which it was agreed that they would begin to locally assemble the Polo Vivo.

Forecasted production figures and build quality

The plans announced by the PSA group is for their newly reopened plant in Kenya to produce at least 1,000 vehicles every year. Peugeot cars have not been assembled in Kenya since 2002 when the brand withdraw from its plant after almost 28 years.

The Kenyan government is not only excited by the jobs that will be created as a result of this renewed partnership between the PSA group and Urysia Limited, but also believes it will improve the actual quality of the vehicles themselves. This is because they are confident that vehicles assembled locally are much better adapted to the countries local terrain than any vehicles that have been imported.

The “Buy Kenya Build Kenya” policy

Uhuru Kenyatta, the President of Kenya recently emphasized that agreements such as those with Peugeot and Volkswagen, are just part of his governments refocus on protecting Kenyan based businesses and creating local jobs. He said “The investment signed today by the Peugeot Group to locally assemble motor vehicles in our country at a plant which will be announced in due course is most welcome,”, he later added, “My government will continue to enforce the Buy Kenya Build Kenya policy to support companies and businesses that produce in Kenya. We hope to see many Peugeot cars on our roads going forward – all of them built right here in Kenya, by Kenyans, for Kenyans and the region,”.

The new deal will not only help to enforce the governments new policy of “Buy Kenya Build Kenya” but will also help to reduce PSA’s dependence on what is currently a challenging European market.

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