government

Kenya to set up automotive council to boost local assembly of motor vehicles

July 13, 2022

The Kenyan government will set up a national automotive council to facilitate the implementation of an automotive policy that is geared towards boosting the local assembling of motor vehicles, President Uhuru Kenyatta said on Tuesday.

Kenyatta made the remarks in Nairobi, where he launched a locally assembled Euro 4 Mitsubishi L200 pickup.

The Head of State encouraged stakeholders in the industry to continue working with the Government to ensure it achieves its objectives of reviving and stabilizing the automotive sector.

He thanked the stakeholders in the automotive industry for their efforts towards growing the sector.

“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 my commitment that we shall continue to work together to reach the targets that we envisioned way back in 2019,” he said.

“….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 added.

Also speaking at Tuesday’s launch ceremony, Industrialization Chief Administrative Secretary (CAS) David Osiany said the implementation of the National Automotive Policy will ensure the country regains its position as a regional automotive manufacturing hub.

Osiany acknowledged that the country’s assembly plants are currently producing 6,000 vehicles per annum despite having the capacity to 30,000 units, accounting for less than 25 percent of the production capacity.

“The industry has been able to provide 100,000 direct and indirect jobs to Kenyans. The industry also contributes about 30 billion per annum to the government through taxation,” the CAS said.

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