Mahindra and Mahindra Ltd, Indian automaker, has commenced operations in Kenya as its gateway into the East African market with locally assembling two of its small commercial trucks.
The Mahindra Scorpio Single and Double cabin pick-ups were assembled at the Associated Vehicle Assembly (AVA Kenya) plant in Mombasa.
To ensure sustainability, President Uhuru Kenyatta directed the National Treasury and the Kenya Revenue Authority to 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.
Uhuru 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.
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.
“This fact has encouraged my administration to continue to make every effort to revitalise 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.
“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.
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