Betty Maina, Cabinet Secretary for Industrialization, Trade, and Enterprise Development, stated that the government is dedicated to fostering an enabling environment for local and foreign investors.
According to Maina, the government has implemented a number of regulatory steps to guarantee that Kenya’s motor industry functions in a favourable climate with the goal of increasing the sector.
The CS was addressing during the launching of a Toyota Hiace assembly line of 16 seater vans by Toyota Kenya at the Associated Vehicle Assembling (AVA) Plant at Miritini in Mombasa.
Maina confirmed that the government was relying on the automotive policy to simplify the domestic car assembly industry. “We want to see more replacement parts manufactured locally so that you don’t have to import everything since we have the capability and people resource,” Maina added.
She stated that the government will continue to support local assemblers by purchasing automobiles locally, in keeping with the Buy Kenya Build Kenya initiative. “The government opted to purchase domestically built automobiles in order to boost domestic industry,” the CS explained.
According to Maina, the President affirmed that the government will set aside Sh600 million for the purchase of locally built automobiles in order to stimulate and sustain the operations of local motor vehicle manufacturers and create additional employment.
Toyota Kenya Chief Operating Officer Joshua Anya stated that the local assembly aims to build roughly 500 units per year in order to increase its market share in the public transportation sector.
Anya stated that the cost of one unit will range between Sh4 million and Sh4.5 million, adding that the manufacturing will greatly solve the local market’s shortfall.
He stated that the new assembly line will create around 1,500 employment in Mombasa County, and that the cars will be constructed inside the facility before being delivered to other outlets for sale.
“This shows our commitment to growing the automotive sector and increasing domestically built units,” he added.
“The main reason we required an assembly line expressly for the Hiace was to meet the country’s expanding demand. The Toyota Hiace has a 2.5-liter engine and an automated transmission,” Anya noted.
According to CS Maina, Kenya’s automotive sector has the potential to produce over 34,000 automobiles per year, which is sufficient to meet local vehicle demand.
