Support key sectors to create jobs and fuel our economic potential

Opinion
By Isaac Kalua Green | Jul 28, 2024
Rayford Mwenda at one of his smart greenhouse projects. [Silas Nyamweya, Standard]

As the chairperson of Honda Motorcycle Kenya Ltd and the Motorcycle Assemblers Association of Kenya (MAAK), I have witnessed firsthand how strategic support for key industries can transform a nation’s economic landscape.

Last week, as we celebrated a decade of Honda’s operation in Kenya and the launch of a new horizon with bountiful initiatives, we reflected on the potential within our local industries to address economic challenges innovatively. 

And useful lessons abound from all around the world. The US, for instance, has long demonstrated the effectiveness of targeted industrial support. In South Carolina, incentives to BMW have dramatically boosted the local economy through job creation and investment.

Texas has fostered growth in technology by providing tax incentives and infrastructure support to tech companies. Tallahassee Leon County has supported its healthcare and biotechnology sectors in Florida with targeted programmes that have enhanced medical research and healthcare services.

These efforts have been mirrored in advanced manufacturing and logistics, where strategic support has led to improved efficiencies in production processes and product movement. 

Kenya too can tap into her significant potential, especially in the automotive sector, which includes motorcycle manufacturing as this is the lowest-hanging fruit. Honda Kenya alone employs about 100 team members directly and has produced over 130,000 motorcycles, generating substantial employment opportunities.

This supports approximately 913,745 Kenyans directly and indirectly, underscoring the profound impact each job has within the community. In terms of financial contribution, Honda has infused Sh3,608,822,532 into our economy through taxes.

As a key participant in the motorcycle assembly industry, our extensive network includes 74 dealers across Kenya, supporting over 3,000 livelihoods. However, the potential for such substantial economic impact is frequently undermined by restrictive government policies.

Many local enterprises find themselves in direct competition with government action that should otherwise be supportive. For instance, delays in government payments to suppliers or preferential treatment towards certain market players at the expense of competitors distorts the market and frustrates growth.

In the motorcycle sector, companies that manufacture internal combustion engines here in Kenya, are the same ones excelling globally in electric bike production.

The supportive strategies applied to these large corporations should, therefore, be extended to small and medium enterprises, which are the backbone of our economy. This broader support would enhance economic resilience and inclusivity, benefiting the entire country. 

Further, with the impacts of climate change more glaring than before, environmental sustainability must remain at the core of government policy and business operations. The introduction of “Plant Your Age Initiative,” which has led to planting of over 130,000 trees (one tree per bike produced), is only one example of how businesses can leverage on innovative ideas to reduce their ecological footprint on the planet and promote sustainability as an integral part of their business ethos in the long term. 

In the case of the US, the effectiveness of all such initiatives such as the introduction of electric vehicles is often gauged through specific metrics such as job creation, investment levels, and wage benchmarks. This too, could be similarly applied in Kenya to measure the success of economic objectives.

By setting measurable goals and aligning incentives with key economic sectors, Kenya can stimulate job creation, encourage significant domestic and foreign investments, and ensure the economic benefits are widely felt across the economy. 

Ultimately, Kenya’s future economic strategy must prioritise sustainability and inclusive growth.

The automotive industry, with its vast potential for innovation and job creation, is undoubtedly well-positioned to drive this change. Supporting industries ready to innovate and expand responsibly can ensure that our economic recovery and growth are both robust and sustainable.

We can transform our economic challenges into tangible opportunities for all Kenyans. Think green, act green.

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