Peugeot: New Car Assembly Plant To Be Launched In Kenya

Kenyan President, Uhuru Kenyatta over the weekend announced that French automobile manufacturer, Peugeot intends to launch an assembly plant in the country.

France’s PSA Group, the maker of Peugeot and Citroen cars, has signed an assembly licence agreement with the Kenyan government.

The presidency is assured that the business step will be for the good of the Kenyan economy.

“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 Peugeot Group will partner with Kenya’s local agent for the brand, Urysia, in assembling vehicles in the country.

Urysia limited has served as the importer and distributor for the Peugeot brand in Kenya since 2010.

The return of Peugeot in the country will make the automaker the second car assembly plant in Kenya since last year.

President Uhuru registered his delight that “industries and investment in Kenya are on the move,”.

He was happy that Wrigley had already invested 5.8 billion in the Machakos plant; a Volkswagen plant was launched in Thika and the Pan Paper plant has equally been revived.

The Volkswagen plant in Thika have been assembling vehicles locally since last year.

Last year the Peugeot group announced their intention to make a comeback after so many years. The Peugeot brand at a point served as official cars in several African countries and beyond.

See Also: Izuogu Z-600 Blazed The Trail For Contemporary African-made Cars

Report says that the car assembly will start with the 508 brand.

The revival and launch of these car assembly plants will make it easy for the government to address the importation of second-hand products which Industrialization Cabinet Secretary Adan Mohamed, calls the “single biggest threat” to Kenyan industries.

“It will create thousands of jobs we need for our young people; it will teach them new skills; and it will hasten the growth of associated industries,”– President Uhuru.

According to a press release on PSA Group’s website, operations will commence in the car plant by the middle of the year.

Adding to the car assembly plant, the Kenyan government signed a $180 million agreement with the French government to build the Ruiru II Dam and water supply project.