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Kenyan-based electric mobility firm, Roam, is seeking to expand its local supply chain in order to ensure at least 70pc of parts used in the assembly of its electric bikes are sourced domestically.
Speaking during the launch of its second generation e-bike, Roam Air, Regional Sales Operation Manager Habib Lukaya says the firm currently sources 36pc or 40 parts from local suppliers which exceeds requirements under legal notice 112 .
“The long term goal is to be able to source everything locally. But are starting with 36pc right now that is according to the requirement by the government. we are now sourcing 36pc of components locally. We are trying to build local capacity so that we can also do skills transfer from our international supplier to build capacity to be able to increase from 36pc to 70pc so that once we do that, its going to help us reduce the cost of the bike and we are not affected by the exchange rate,” said Lukaya.
According to the firm, limited availability of parts has held production at 3000 bikes annually compared to a maximum capacity of 50,000 bikes per year.
Lukaya says by cutting down imports, Roam is targeting to build long term value as well as sustainability.
Local assemblers manufacturing 11 key parts currently qualify for Duty Remission Scheme (DRS).
“Right now for people doing assembly, they are getting a big tax incentive on imports but we are not drawn to that. We are looking at what will be the long term benefits in terms of the society we are in because this is creating jobs for young engineers and many people in the community. So we are looking at local value addition,” he added.
Among parts currently sourced locally include mechanical auxiliaries, body panels, wire harness, connectors, battery compartment and storage unit.
Roam Air boasts of enhanced safety features, improved design and improved waterproofing for its battery pack and enhanced frame which can support 240km of load.
“We didn’t just update a few features, we rethought the motorcycle with input from the people who use it every day. This version is grounded in Kenyan realities,” said Monicah Mwalo, Roam Production Manager.
The firm has also not ruled out raising additional capital to fund its expansion and increase production of e-bikes.
