Volkswagen aims to start assembly of the Polo Vivo in Kenya at the end of this year.

Kenya will be the first global market outside South Africa to sell the Vivo.

Volkswagen South Africa (VWSA) MD and chairperson Thomas Schaefer and the Kenyan government signed the deal for the new plant in the East African country this week.

The German car maker regards the expansion as “an important step towards engaging further in new emerging markets – with the right products and know-how from the region”.

The Polo Vivo – the same model currently on the market in South Africa – will be assembled in Thika, near the Kenyan capital of Nairobi, from kits supplied by VWSA’s plant in the Eastern Cape.

Initial planning targets semi-knockdown assembly of up to 5 000 Vivos a year.

The possibility of the Passat and Tiguan models joining the line-up is yet to be evaluated.

The assembly project will be jointly realised with vehicle importer DT Dobie.

The plant will be operated by Kenya Vehicle Manufacturers from 2017.

The plant will be Volkswagen’s third production facility in Africa, alongside the South African factory and a local production facility in Nigeria.

Volkswagen says it is not yet in a position to calculate the full investment value of the project.

“We are still in the process of defining the full dimensions of the investment, which will initially be for fixtures and tools, as well as training and set-up costs,” says VWSA spokesperson Matt Gennrich.

“We are taking the successful Polo Vivo from South Africa to Kenya to leverage the enormous growth potential of the African automobile market and participate in its positive development,” notes Schaefer.

“This compact model is the best-selling car in the sub-Saharan region, so it is the ideal entry model for the promising Kenyan market.”

Kenyan president Uhuru Kenyatta regards the Volkswagen investment as “a key milestone” in his administration’s push to grow his country’s manufacturing base.

A local training centre will be established to support the plant.

The centre will initially focus on the needs of the Volkswagen production team, however, later on it may also provide basic training for young people to learn general industrial skills.

The Vivo plant signals the return of Volkswagen to Kenya.

The German car manufacturer assembled the Beetle in the country in the 1960s.

Gennrich says Schaefer’s presence in Kenya does not signal an official expansion of his duties from South Africa to Africa.

However, “he has been tasked with looking for opportunities in Africa, and the Kenya operation will fall under VWSA.”