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Kenyan Construction Boom Fuels GM Truck Growth

May 02, 2016

A construction boom in Kenya has fueled a rise in commercial truck sales for General Motors, which is investing $7.9 million in 2016 to upgrade its assembly plant in Nairobi and more than double output, according to a Reuters report.

GM East Africa Managing Director Rita Kavashe said 20,000 new vehicles were sold in Kenya last year, the highest on record, and 98 percent of those were trucks and buses, according to the report.

The Nairobi plant, one of three GM manufacturing hubs in Africa, is geared towards the commercial bus and truck market and typically builds trucks weighing between 3.5 tons and 15 tons. GM also has a presence in South Africa and Egypt, according to the report.

General Motors' total global vehicle sales were 9.8 million in 2015, up 0.2 percent in a third consecutive year of record sales, according to the report.

GM East Africa also sells its vehicle to markets in Tanzania, Uganda, Rwanda and Burundi - all members of trade bloc East African Community, according to the report.

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