President Uhuru Kenyatta on Monday at State House, Nairobi 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.
The president congratulated Simba Corporation for the refurbishment of the Mombasa-based AVA to a level of the ‘[p globally endorsed center 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 growth of associated downstream industries and encourage even more investments, not only in this sector but in others as well,” the President said.
He emphasized that his administration has prioritized the local assembly of motor vehicles as a means of creating jobs and enhancing technology transfer.
AVA is a wholly owned subsidiary of Simba Corporation Limited.
During the launch, President Kenyatta directed the National Treasury and the Kenya Revenue Authority to immediately institute actions aimed at reducing taxes for vehicles that are fully assembled locally.
“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.
He 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, President Kenyatta 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 emphasized that his administration has prioritized the local assembly of motor vehicles as a means of creating jobs and enhancing technology transfer.
“I shall continue to provide incentives to expand this sector,” the President said
President Kenyatta 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.