The automobile industry players are set to benefit from new proposed incentives by the government in the 2017/2018 budget.
Treasury CS Henry Rotich said in his speech that the Government will begin serious talks with industry stakeholders to finalize the development of the pending Kenya’s Comprehensive Automotive Industry Development Policy and finalize an actionable 10-year Automotive Industry Development Plan – a move Rotich said would set the industry “on a firm footing in order to enable it grow and create employment opportunities for the youth in Kenya and the region at large.”
The two policies mainly target local car assemblers with the government hopeful the strategies will promote and develop the country’s motor vehicle industry and in the region while at the same time creating jobs opportunities to local youth at the vehicle assembly and production plants.
“Kenya has seen the return of investors into the automotive industry. These have included Volkswagen, Peugeot, Toyota and others. Indeed, the establishment of technical training and technology transfer mechanisms as part of the reinvigoration of the sector is a key building block. We do not want to lose the momentum gained thus far,” said Rotich.
The announcement is set to attract more car manufacturers who will be looking to Kenya for new factories as a crucial hub for global players keen to tap into the existing opportunities in the industry.