President Kenyatta unveils first locally assembled Mahindra vehicles

By PSCU, NAIROBI, Kenya, Mar 9 – President Uhuru Kenyatta Monday 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. 

AVA is
a wholly owned subsidiary of Simba Corporation Limited.

Speaking
during the launch at State House, Nairobi, 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. 

The
Head of State 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
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
revitalize 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. 

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
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 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 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 vehicle manufacturers and is certified and
endorsed by 20 global manufacturers. 

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.

Other
speakers at the event attended by Head of Public Service Joseph Kinyua,
Inspector General of Police Hillary Nzioki Mutyambai and his deputy Edward
Mbugua included Trade, Industry and Cooperatives CS Betty Maina and Simba
Corporation Chairman Adil Popat.