advertisement

Corporate

Kenya's vehicle output gets boost from Peugeot plan

The Urysia showroom and service centre on Bunyala Road, Nairobi. The Peugeot operations involve bolting together parts from kits to make finished vehicles. FILE PHOTO | DIANA NGILA
The Urysia showroom and service centre on Bunyala Road, Nairobi. The Peugeot operations involve bolting together parts from kits to make finished vehicles. FILE PHOTO | DIANA NGILA 

French carmaker Peugeot SA's plan to resume car assembly in Kenya after more than a decade will help raise total output by 43 per cent in three years to 10,000 vehicles, the motor industry association said.

The country undermined what was a thriving local assembly industry in the 1990s with policies that encouraged cheap secondhand imports.

It is now seeking to attract manufacturers back to help create jobs and support growth.

Peugeot, which closed its local plant in 2002, will now put together two models in Kenya after Volkswagen took a similar step last year.

advertisement