Truck manufacturer Volvo Group is to invest a Sh2.5 billion assembly plant in Mombasa eyeing the East African region market.
Volvo Trucks President Claes Nilsson says the plant will be launched in the first quarter of 2018 targeting an output of 500 units per year.
“We see great opportunities and believe that this part of Africa that has potential to grow substantially; it has a lot of different resources due to the diverse production of different products and natural resources,” said Nilsson
The planned investment is expected to create approximately 300 direct jobs in addition to other indirect employment opportunities.
The move comes even as French car manufacturer Peugeot promised a return to Kenya and it is set to assemble 5 of its models beginning June this year.
Volkswagen also resumed production of cars in Thika after a four-decade pause in production by the German carmaker in Kenya.