President Uhuru unveils first assembled Mahindra cars

President Uhuru on steering wheel of fully locally assembled Mahindra car (PHOTO: PSCU)

President Uhuru has ordered the Kenya Revenue Authority and National Treasury to initiate plans of reducing taxes on cars fully assembled locally.

He made the directive when he unveiled the first locally assembled Mahindra vehicles.

The Mahindra Scorpio Single and Double cabin pick-ups were assembled at the Associated Vehicle Assembly (AVA Kenya) plant in Mombasa.

“Further, to make locally assembled vehicles more affordable and available to Kenyans, I have also directed that the National Treasury and the Ministry of Trade, Industry, and Cooperatives hold discussions with financial institutions to create special products for locally assembled vehicles,” President Kenyatta said.

Uhuru asked motor vehicle assemblers, in consultation with the National Treasury and the Ministry of Industry, to work out a mutually agreeable framework that will ensure the benefits accruing from the tax incentives are passed on to the consumer.

With the launch of the two-vehicle models, Uhuru said Mahindra Motors has joined the list of globally renowned automotive brands that have chosen Kenya as their home.

Other global automobile brands that are locally assembled in the country include Toyota, Peugeot, and Volkswagen.

The President emphasised that his administration has prioritised the local assembly of motor vehicles as a means of creating jobs and enhancing technology transfer.

President Uhuru admires first locally assembled Mahindra car (PHOTO: PSCU)

“I shall continue to provide incentives to expand this sector,” the President said as he commended Simba Corporation Limited for choosing to expand its investments in Kenya.

“We appreciate your sustained investment in Kenya as it is a vote of confidence in our ever-improving business environment."

“This fact has encouraged my administration to continue to make every effort to revitalise the contribution of the manufacturing sector to the economy,” the President told the Simba Corporation leadership team that was led by Group Chairman Adil Popat.

President Uhuru drives first locally assembled Mahindra car at State House, Nairobi (PHOTO: PSCU)

In keeping with the “Buy Kenya, Build Kenya” campaign, the President said the government is promoting market access through preferential procurement of locally assembled vehicles.

“My Government is committed to working together with all players to enhance the capacity of the motor industry. I am, in particular, pleased to note the progress we are making in the motor vehicle sector,” the President said.

He congratulated Simba Corporation for the refurbishment of the Mombasa-based AVA to a level of the globally endorsed centre of excellence with a capacity to assemble and supply to the East African region.

“This is important to us, as it will create more opportunities for our people through employment, facilitate the growth of associated downstream industries and encourage even more investments, not only in this sector but in others as well,” the President said.

AVA currently assembles vehicles for 10 manufacturers and is certified and endorsed by 20 global manufacturers.

Uhuru challenged other sector players to take advantage of the refurbished AVA facility, which is currently producing 10,000 units annually, to increase their production.

He encouraged the private sector, not only in the manufacturing sector but across the entire economy, to tap into the ingenuity of young Kenyans and join in conceptualizing and delivering transformative innovations that will help boost the economy.