By Oluwaseun Sonde
Kenyan Industrialization Chief Administrative Secretary (CAS), David Osiany has revealed that Automotive industry has provided 100,000 direct and indirect jobs and contributed about 30 billion per annum to the government through taxation.
This revelation was made during launching of locally assembled Euro 4 Mitsubishi L200 pickup at State House, Nairobi, Kenya on Tuesday, he said the implementation of National Automotive Policy will ensure the country regains its position as a regional automotive manufacturing hub.
Osiany disclosed that the industry has the capacity to produce 30,000 vehicles per annum but regretted that the assembly plants are currently producing a paltry 6,000 units, accounting for less than 25% of the production capacity.
Kenyan President, Uhuru Kenyatta who has earlier vowed that his Government will set up a national automotive council to facilitate implementation of the National Automotive Policy to gear towards boosting the local assembling of motor vehicles.
Reiterating Government’s commitment to creating an enabling environment for the growth of the country’s automotive industry, the President encouraged stakeholders in the industry to continue working with the Government to achieve its objectives of reviving and stabilizing the automotive sector.
"...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 becomes once again predominant part of the Kenyan economy,” Kenyatta said.
He thanked Mitsubishi, Associated Vehicle Assembly (AVA) and Simba Corporation for being true partners in the country’s efforts in growing the industry.
“I really appreciate the partnership that we have had that has led to a revival of this industry that was once-moribund and for me to give you my assurance and commitment that we shall continue to work together to reach the targets that we envisioned way back in 2019.
"Our determination to ensure that future Government also continue with the same policy because this is not only good for increasing the manufacturing capacity of the country but also good in terms of skills transfer, in terms of creating jobs for our people and in terms of creating new opportunities,” he said.
The President noted that Kenya used to have one of the most vibrant automotive industry in the region, adding that Government will remain steadfast in ensuring policies aimed at bolstering the growth of the automotive industry continue to be implemented.
"We had all these people who were out there making break pads, we had people making windscreens, we had people making suspensions and shock absorbers and all these things.
"It is my hope that as we continue to increase the number of vehicle assembling plants, we will also have the backward linkages that would also enable some of these other industries that were a critical cog to local assembly revived, restored and brought back into play,” President Kenyatta said.
Japanese Deputy Ambassador to Kenya, Yasuhisa Kitagawa said his country is committed to partnership with Kenya to ensure all designed projects are fulfilled for the benefit of the citizens of the two countries.
"Mombasa city where the L200 is assembled is an area that Japan has very strong commitment through giant projects such as the expansion of port facilities and development of Special Economic Zones," Mr. Kitagawa said.
Simba Colt Corporation Limited Chairman Adil Popat said AVA has increased its production from 2000 units to 7,500 units in the last three years.
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