In order to facilitate the implementation of the National Automotive Policy, which is intended to increase local assembly of motor vehicles, President Uhuru Kenyatta announced today that the government will establish a national automotive council.
At the State House in Nairobi, where the locally built Euro 4 Mitsubishi L200 pickup was unveiled, President Kenyatta reaffirmed the government’s commitment to fostering the expansion of the nation’s automotive industry.
President Kenyatta stated, “…I take note of the issue of getting the council established and that is something we shall see if we can do before we leave office to ensure that we create that enabling environment for the necessary institutions that will see this particular industry continue on its growth trajectory and become once again a preeminent part of the Kenyan economy.
The Head of State urged industry participants to keep cooperating with the government to see to it that its goals of reviving and stabilizing the automotive sector are met.
He expressed his gratitude to Simba Corporation, Associated Vehicle Assembly (AVA), and Mitsubishi for being genuine allies in the nation’s efforts to expand the industry.
“I sincerely appreciate the collaborative effort that has brought this once-moribund sector of the economy back to life, and I pledge to keep working with you to achieve the goals that we set for ourselves back in 2019.
He stated, “…our determination to ensure that future Government also continues with the same policy because this is good in terms of skills transfer, in terms of creating jobs for our people, and in terms of creating new opportunities,” in addition to improving the nation’s manufacturing capacity.
President Kenyatta noted that the nation once had one of the most thriving automotive industries in the region and declared that the government will continue to be steadfast in ensuring that laws designed to support the industry’s expansion are put into place.
“We had people making windscreens, suspensions, shock absorbers, and all these other things, as well as break pads, suspensions, and other things.
President Kenyatta expressed the hope that as the number of vehicle assembly plants grows, we will also have the backward connections necessary to revive, restore, and reintroduce some of the other industries that were a vital cog in local assembly.
Industrialization According to Chief Administrative Secretary (CAS) David Osiany, the National Automotive Policy’s execution will guarantee that the nation reclaims its status as a regional manufacturing centre for automobiles.
The assembly factories are currently producing a pitiful 6,000 units, or less than 25% of the industry’s production potential, he lamented.
The industry has the capacity to build 30,000 automobiles annually.
The sector has been able to give Kenyans 100,000 direct and indirect jobs.
The business also pays the government roughly $30 billion a year in taxes, according to the CAS.
Yasuhisa Kitagawa, the deputy ambassador of Japan to Kenya, stated that his nation is committed to its cooperation with Kenya and will make sure that all planned initiatives are carried out for the benefit of the people of the two nations.
“Japan has extremely strong commitment to Mombasa city where the L200 is assembled through huge projects like as the development of Special Economic Zones and the improvement of port facilities,” Mr. Kitagawa said.
Adil Popat, Chairman of Simba Colt Corporation Limited, stated that AVA has grown its production over the past three years from 2000 units to 7,500 units.