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TRANSPORT<br />
Lightening<br />
the Load for<br />
Nairobi<br />
A light rail system will be<br />
constructed in Nairobi to ease<br />
congestion. The light rail system<br />
will run along nine major populated<br />
suburbs not supported by the<br />
current transit structure. Included<br />
in the nine suburban areas are<br />
stations in Ruiru-Thika, Juja<br />
Road-Kangundo, Jomo Kenyatta<br />
International Airport-Athi River,<br />
Lang’ata Road-Karen and Upper<br />
Hill-Ngong.<br />
The rail system will also include<br />
stops along the Eastlands area<br />
including Kabete-Kikuyu, Gigiri-<br />
Limuru and Outer Ring Road. It will<br />
connect the nine Nairobi suburbs<br />
to the city center, which will end at<br />
the Nairobi Railway Station in the<br />
Central Business District.<br />
The project, estimated to cost<br />
$140 million, will be supported by<br />
the wider Metropolitan Mass Rapid<br />
Transport System (MRTS). A recent<br />
survey of Nairobi says that the city<br />
contains the world’s fourth most<br />
congested roads.<br />
Additionally, the Kenyan<br />
government has estimated that<br />
traffic jams cost $578,000 a day<br />
in lost productivity. The MRTS will<br />
aim to provide a city-wide heavy<br />
rail, light rail and rapid bus transit<br />
to ease costs and congestion<br />
rates. The cost of the project will<br />
be financed by various private<br />
investors.<br />
Ksh57M<br />
The Kenyan government<br />
has estimated that traffic<br />
jams cost Kshs57 m a day<br />
in lost productivity<br />
FDI<br />
VW arrival in Kenya<br />
boosts FDI portfolio<br />
Nairobi viewed favourable by investors looking for a<br />
gateway to East Africa’s 400-million people market<br />
C<br />
ar maker Volkswagen<br />
is the latest major<br />
entrant into the<br />
Kenyan market<br />
as the country<br />
continues<br />
to boast of rising foreign direct<br />
investment arriving on its shores.<br />
Volkswagen is expanding its<br />
commitment in Africa with local<br />
production of the Polo Vivo in the<br />
Kenyan town of Thika near Nairobi.<br />
According to the German<br />
automaker, the project which will<br />
be jointly realised with local firm,<br />
DT Dobie, will be Volkswagen’s<br />
third production facility in Africa –<br />
alongside the South African factory<br />
and a local production facility in<br />
Nigeria. It is planned to build up<br />
to 5,000 units of the Polo Vivo per<br />
year at the plant operated by Kenya<br />
Vehicle Manufacturers (KVM) from<br />
2017.<br />
“We are taking the successful Polo<br />
Vivo from South Africa to Kenya<br />
to leverage the enormous growth<br />
potential of the African automobile<br />
TRENDS & INTEL<br />
market and participate in its positive<br />
development. This compact model<br />
is the best-selling car in the Sub-<br />
Saharan region – so it is the ideal<br />
entry model for the promising<br />
Kenyan market,” said VW’s Thomas<br />
Schäfer commented at the signing<br />
ceremony.<br />
“With this move, we are<br />
strengthening the brand’s overall<br />
position in Africa and taking an<br />
important step towards expanding<br />
our commitment in the region,”<br />
Schäfer continued.<br />
During a visit to State House<br />
by the VW team, President Uhuru<br />
Kenyatta said: “The investment by<br />
the Volkswagen Group in Kenya is a<br />
key milestone in my administration’s<br />
determined push to grow the<br />
manufacturing base and industrialise<br />
the nation.”<br />
Kenya is one of Africa’s emerging<br />
markets. The country plays a<br />
prominent role among East African<br />
nations and with a GDP of some US$<br />
63 billion, it is one of the strongest<br />
economies in East Africa.<br />
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