President Ruto says Kenya to be among Africa’s leading vehicle manufacturers

President Ruto says that the government is committed to hosting more automotive players in a bid to increase the local production of vehicles.

He said the National Automotive Policy has created a conducive environment for firms to set up in Kenya further noting that the policy has tamed instability in the sector, especially regarding tax laws.

“Our plan is for more assemblers to set up and operate at full capacity so that we can supply Africa with competitive units,” he noted.

President Ruto who spoke on Wednesday when he launched the first-ever electro-deposition paint plant at the Isuzu East Africa, said the move would create more jobs, and enhance skills development and reliable mobility.

“Our ambition is not just for these assemblers to operate at full capacity, we want more to set up so that we 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,” he noted.

According to the president, the current manufacturing companies in the country generate about 100,000 jobs and with the new policy, projections are expected to rise.

"As matters stand, we only have 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% capacity, they support around 100,000 direct and indirect jobs," he stated.

"It is time for Kenya to claim its rightful place among Africa’s leading vehicle manufacturers. South Africa’s industry supports 110,000 direct jobs and over 350,000 indirect jobs, which produced 421,673 vehicles, 106, 832 0 of which were exported."

It is expected that the Ksh.500 million will deepen the firm’s manufacturing, improve local production and make it globally competitive.

“With investments like Isuzu’s, we can propel Kenya back to its original vision of leading Africa’s automotive competitiveness,” the president added.

Present at the event were Isuzu East Africa Managing Director Rita Kavashe, Trade Principal Secretary Alfred K’Ombudo, Isuzu East Africa Chairman Hiroshi Hisatomi, Deputy Chief of Mission Counsellor in the Embassy of Japan Kitagawa Yasuhisha, among others.

The President urged investors to advance their investment in Kenya by moving into the Tier One component of manufacturing.

He said Kenya intends to fully exploit the immense opportunities presented in the automotive industry’s untapped potential.

Yasuhisha on his part noted that Isuzu’s investment will stimulate the transfer of technology, knowledge and expertise.

“It also furthers eco-friendly manufacturing at a time when the world is confronting climate change.," he added.

For the last four years, Isuzu East Africa has invested Ksh.1.3 billion in the expansion and upgrade, sending a clear signal of its confidence in Kenya as an investment destination.