Egypt’s auto giant GB Auto is plotting an entry into Kenya, regulatory filings at the Egyptian Exchange (EGX) have confirmed.
It wants to assemble and distribute passenger vehicles in Kenya. A board meeting approved the plans to enter a joint venture to facilitate the expansion.
The firm was founded by Raouf Ghabbour in 1985. It deals in automobiles, buses, lorries and motorcycles.
GB Auto has grown over the years to become the leading car assembler and distributor in the Middle East and North Africa. Now, Ghabbour is looking towards East Africa.
The wealthy Ghabbour family holds a majority 62.9-percent stake in the firm. Following the firm’s strong perfomance in 2021, the family will receive a total dividend distribution of $13.16 million.
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For the year ended December 2021, GB Auto’s net profit rose 66.6 percent from $70.6 million in 2020 to $117.6 million at the end of 2021, highlighting increased consumer demand across all the group’s business lines during the period.
GB Auto founder Raouf Ghabbour continues to lead the company. He is one of Egypt’s richest men.
His net worth has been placed at $167 million (Ksh19.2 billion).
Among brands GB Auto manufactures, assembles, imports and distributes vehicles for are Hyundai, Bajaj, Mitsubishi, and Volvo.
The firm’s entry into Kenya comes at a time when the government is set to exempt locally assembled passenger cars from VAT and excise taxes. The move is expected to bring down the cost of new vehicles in the country.
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