This archive report was first published on 13 August 2019.
On August 13, 2019, the significance of manufacturing to any economy globally was highlighted by the Government's Big Four Agenda, which aimed to grow Kenya's manufacturing sector as a means of creating jobs.
The initiative attracted investors who set up factories with enough capacity to satisfy local and regional demand, leading to the creation of employment, technology transfer, and contribution to the gross domestic product.
However, the introduction of imported used vehicles in the 1990s reduced Kenya's supportive environment for local assemblers, with the country importing an average of 7,600 second-hand vehicles per month.
According to official data, the average number of assembled units stood at about 430, negatively affecting the country's manufacturing potential and the intended impact to the economy.
The National Automotive Policy was introduced to support the growth and transformation of the automotive industry in Kenya into a significant contributor to the national GDP under manufacturing by 2023.
Statistics from other countries show that local assemblies create more formal jobs on average compared to vehicle import trades, thereby increasing employment opportunities ten-fold across the industry value chains.
Adil Popat, Simba Corp Executive Chairman, emphasized the importance of local vehicle assembly, stating, 'When we assemble vehicles locally, we create formal, quality and meaningful jobs where employees can afford to pay taxes and technology transfer.'
With the Automotive Policy in place, the industry has the capacity to create over 150,000 jobs in Kenya directly and indirectly, according to estimates.
