VW boom for Kenya
News of the full production for VW cars in Kenya starting in January, has caused much thought. Some are not very enthusiastic.
President Uhuru Kenyatta has been pushing very hard for the venture, because its a prestigious pillar of industrialisation.
But the huge reconditioned vehicle industry may not be so receptive. On the other hand, customers will be more concerned over pricing. When the government lifted restrictions on the imports of Japanese reconditioned vehicles, there was an explosion of new ownership. Now, we are told that the longterm prospects of the VW venture will also depend on the government reimposing these restrictions.
The VW project is a boom for Kenya’s industrial profile, but you wonder at what cost to the less affluent.