Kenya: Chinese company finalizes Sh2.6bn deal for electric vehicle assembly

Chinese vehicle manufacturer Chery is set to invest Sh2.62 billion in Kenya to enhance the production of electric vehicles (EVs). This significant investment aims to bolster the local EV market.

The agreement was established in partnership with Kenyan company Afrigreen Automobile. The collaboration will lead to the construction of a new assembly plant dedicated to producing electric vehicles within Kenya.

Abubakar Hassan Abubakar, Principal Secretary of the Ministry of Investments, Trade, and Industry, expressed optimism that this partnership will increase the adoption of EVs in the country. The initiative is expected to make electric vehicles more affordable and accessible to the Kenyan public.

“The assembly plant will help the transport sector to become greener as we currently have about 4,000 e-vehicles against a population of about 1.7 million cars on the roads,” Hassan said.

The event attracted a high-level delegation from East China’s Anhui Province as well as senior Kenyan government officials.

He added that a $20-million investment is expected to create about 3,000 direct and indirect jobs in the country.

Additionally, Director of Chery International for Central Africa Region, Hai Wei, said Kenya was selected to house the assembly plant because of its skilled workforce and position as an economic hub in Africa.

Hai added that Chery has 26 years of innovative research that can help produce cars suited for the local market.

Shan Xiangqian, the Vice-Governor of Anhui Province, remarked that the partnership between the two companies will significantly bolster Kenya’s reputation as a hub for e-mobility.

Shan further noted that Chery’s decision to enter the Kenyan market stems from the strong and friendly relations between China and Kenya, highlighting the importance of their long-standing diplomatic ties.

Nishant Mishra, Global Head of Future Mobility at Afrigreen Automobile, announced that the new assembly plant is expected to become operational within the next month. The facility will have the capacity to produce between 5,000 and 6,000 electric vehicles annually.