Market News

Uhuru now directs purchase of cars assembled locally

President Uhuru Kenyatta and France President Emmanuel Macron
President Uhuru Kenyatta and France President Emmanuel Macron launch Peugeot 3008 SUV at State House, Nairobi on March 13, 2019. PHOTO | JEFF ANGOTE | NMG 

Local motor vehicle assemblies could be set for higher sales after President Uhuru Kenyatta directed all ministries and other state agencies to buy locally assembled cars.

Speaking in Nairobi when he hosted French President Emmanuel Macron, Mr Kenyatta said the executive decree must be adhered to the letter as an affirmation to his commitment in supporting the ‘Buy Kenya Build Kenya Initiative.’

“It is part of our government’s agenda to promote the philosophy of ‘Buy Kenya Build Kenya’ among our people, government and all government entities. You (state agencies) are expected to buy locally assembled vehicles and spare parts manufactured in Kenya for official government use,” he said.

Mr Kenyatta’s directive could draw displeasure among donor countries who prefer to source motor vehicles, machinery among other products, from their home countries for use in implementation of projects they fund.

Technology transfer


Mr Macron said Kenya and France will collaborate in enhancing private sector linkages that promote establishment of new plants by French-based companies to create jobs in Kenya and a viable technology transfer platform implementing various developments that benefit both countries and East Africa.

“Involving the private sector in both countries is the best way to reconcile French excellence in manufacturing and your decision to manufacture here. This is the best way to embody the philosophy we share, a clear balanced partnership,” he said.

The two leaders commissioned a locally assembly Peugeot 3008, SUV by the Thika-based PGA Group in partnership with the Kenya Vehicle Assemblers. This is the second model assembled in Kenya after the Peugeot 508 saloon was inaugurated in 2017.

Mr Kenyatta said PGA Group was targeting to increase production from 480 units as at December 2018 to 1,000 units by year-end with ongoing expansion set to increase production to 15,000 units a year for sale across Kenya and East African market.