NAIROBI, Kenya, Jun 8 – President William Ruto has asked security agencies to purchase locally assembled vehicles to encourage and sustain the operations of local motor vehicle manufacturers.
He said the national automotive policy has increased the purchase of local vehicles, specifically through leasing, which has boosted MSMEs engaged in maintenance throughout the country.
President Ruto noted that the change of the assembly regulations to allow different levels of vehicle assembly eased entry for new investors and products into the Kenyan industry, with the assembly of pick-ups and passenger vehicles resuming.
“There has been increased local production of vehicles, while new vehicle sales have shifted from fully-built units to locally produced, or completely knocked-down units,” said President Ruto.
The Head of State said the Government has introduced several policy measures to ensure that the motor industry in Kenya operates in a favourable environment aimed at expanding the sector.
He said the Government will continue to promote local assemblers by buying the vehicles locally as part of efforts to boost companies manufacturing goods locally from the available raw materials.
“The Government decided to buy locally assembled vehicles in order to promote home-grown manufacturing,” said President Ruto.
President Ruto made the remarks during the official opening of the Electro-Deposition Paint Plant by Isuzu East Africa on Wednesday in Nairobi.
The Head of State, at the same time, said the Government will expand vehicle leasing programme to include the military, police, NYS and ministries.
‘But before we lease these vehicles, we must be guaranteed that they are locally manufactured vehicles employing Kenyans,’ said President Ruto.
He noted that Kenya currently has one original equipment manufacturer, five motor vehicle assemblers and 32 registered motorcycle assemblers.
“Together, they assemble 46,000 vehicles and 300,000 motorcycles annually and even at the current 25-30 percent capacity, they support around 100,000 direct and indirect jobs,” he said.
The President said Kenya’s ambition was not just for the assemblers to operate at full capacity, but more to set up, so that the country can supply the African market with globally competitive units, create more jobs and enhance skill development as well as promote safe and eco-friendly mobility that is reliable.
The Head of State said with investments like the electro deposition paint plant by Isuzu EA and its overall expansion and upgrading project, he was confident that Kenya can propel itself back to its original vision, which was to lead African automotive competitiveness throughout the AfCFTA.
He said Kenya was keen on fully exploiting the immense opportunity presented in the form of its automotive industry’s untapped potential.
“We shall listen, partner, collaborate and engage industry actors in a committed and intentional manner until the share of the automotive industry in manufacturing, as well as the share of manufacturing to GDP moves sharply in a positive direction,” said President Ruto.
Chairman Isuzu East Africa Hiroshi Hisatomi said Kenya has the potentiality and raw materials to locally assembled vehicles.
“Kenya has an important market for locally assembled vehicles. We will soon expand our operations to other East African countries,” said Mr Hisatomi.
Mr Kitagawa Yasuhisha, deputy Chief of Mission Counsellor, Embassy of Japan praised the diplomatic ties between the two countries, saying it has enabled companies from his country to operate in Kenya.
“Today, we are increasing our investments in Kenya because of good diplomatic ties between our two countries. Kenya is able to grow its manufacturing capacity because of the available raw materials,” said Yasuhisha.
Managing Director, Isuzu East Africa Rita Kavashe said the company has so far paid more than Sh 21 billion as taxes besides creating job opportunities for Kenyans.
Ms Kavashe urged the Government to explore ways of solving the problem of pending bills.
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