By Aaron Maasho and Clement Uwiringiyimana NAIROBI/KIGALI (Reuters) – Volkswagen is to start producing cars in Kenya and Rwanda and start a ride-hailing service in Kigali, as the German carmaker expands pay-per-use transportation business models in markets where rival Uber [UBER.UL] has not gained traction. Emerging markets with poor transportation links have become a key battleground for establishing new mobility services, with Uber competing with newer rivals like Ola, backed by Japan's Softbank , and China's Didi Chuxing. Volkswagen, which is developing electric vehicles and new services as it tries to put its diesel emissions scandal behind it, said on Thursday it had signed a memorandum of understanding in Kigali, the Rwandan capital.