Govt urged to aid in expansion of local manufacturing sector

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By Ronald Owili

The Kenya Association of Manufacturers is calling on ministries, government departments and agencies to adhere to the 40 percent local content rule in order to reignite Kenya’s manufacturing sector especially the automotive industry.

Speaking during the launch of locally made Kibo motorbike, KAM Chief Executive Phyllis Wakiaga said this will aid in expansion of the manufacturing sector through job creation and reduce reliance in imported products.

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Increased local manufacturing and assembly of transport equipment has partly contributed to a reduction in Kenya’s import volume, from 1.58 trillion shillings in 2015 to 1.43 trillion in 2016 shillings, the other being lower fuel prices globally.

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For instance last year, Kenya imported motorcycles, including tuk tuks worth 8.2 billion shillings compared to 10 billion shillings imported the previous year.

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Wakiaga says the automotive industry would be a big beneficiary of incentives availed by the government.

High demand for motorbikes continues to play a big role in driving growth in the transport industry attracting global brands to Kenya.

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Kibo Africa becomes the latest entrant in market seeking to wrestle Chinese made models off the top.

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Designed in the Netherlands and assembled locally, Kibo Africa’s management plans to expand production from the current available model, the k150.

In 2016, Kenya imported 56,510 motorbikes compared to 55,888 motorbikes imported in 2015.

 

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