France’s PSA Group, the maker of Peugeot and Citroen cars, has signed a deal which would allow the company to assemble Peugeot brand vehicles in Kenya. The assembly is billed to kick off in June 2017 with an annual volume of over 1,000 units in order to meet the consumer market in Kenya and surrounding countries.
The signing of the contract took place at the Kenyan capital Nairobi, in the presence of the President of Kenya, Uhuru Kenyatta; the French Minister for the Economy and Finance, Michel Sapin; Urysia CEO, Claude Mwende; and Jean-Christophe Quémard, the PSA Group’s Executive Vice-President for the Middle East & Africa.
Speaking on the deal, Kenyan President Uhuru Kenyatta praised the Peugeot brand, and expressed satisfaction with the development. The Head of State expressed optimism that the resumption of vehicle assembling in the country by Peugeot would create jobs for young people, teach them new skills and hasten the growth of associated industries which will encourage even more investment in other sectors.
“For our part, my Government will continue to enforce the Buy Kenya Build Kenya policy, to support companies and businesses that produce in Kenya,” the Head of State said. “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 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. Peugeot cars have always been renowned for resilience, durability and reliability. We are proud to welcome them back home,” said President Kenyatta.
The Peugeot brand previously assembled vehicles in Kenya between 1974 and 2002. But as part of its current plans, PSA wants to reduce its dependence on European sales. The company will collaborate with local partner Urysia to assemble the Peugeot 508 and the new 3008 SUV from kits of pre-assembled modules. The Peugeot franchise in Kenya is held by Urysia, which has held the sole importer and distributor rights in Kenya since 2010. PSA’s agreement with Urysia is part of PSA’s strategic profitable growth and is geared towards promoting the PSA Group’s ambition to develop internationally.
Speaking on the agreement, Jean-Christophe Quémard stated: “This investment in Kenya is part of the long-term strategy of the PSA Group to increase its sales in Africa and the Middle East, with the aim to sell a million vehicles in 2025. These local production capacities will serve the region’s markets and meet the expectations of our customers and the specific features of each country.”