NAIROBI, Kenya July 22-Stakeholders in the manufacturing sector have challenged the government to foster their efforts in providing incentives to local manufacturers and assemblers in the country.
The move has been hailed as a catalyst to stimulate economic growth and create employment opportunities for the youth.
The chairman of Honda Kenya, Isaac Kalua has averred the move will address the unemployment headache in the country at a time when the youthful generation is demanding action from the government on issues bedeviling them.
The prominent ecopreneur emphasized the untapped potential of the motorcycle manufacturing industry could employ over 5 million Kenyans.
“The greatest opportunity in our country is the automotive sector, it’s the lowest hanging fruit is I the motorcycle. A motorcycle has more than 290 plus parts, currently they are being imported. Policy should drive a smooth transion of getting us from importing to manufacturing,” Kalua said.
He was speaking as chief guest at the launch of Honda’s latest motorcycle model, the ACE 150, where he highlighted that 14 out of the 29 parts required for motorcycle assembly are already being produced locally.
“We have been very deliberate, we participated in giving road map of motorcycle process so that we can start producing, currently we are doing 14 parts so you can imagine the policy moved the transion so smoothly to have at least 50 percent,70 percent and we will be sorted on jobs,” stated Kalua.
Currently, around 1 million individuals benefit directly or indirectly from the burgeoning motorcycle business.
This sector has become a significant contributor to the economy, offering jobs to many Kenyans, particularly the youth.
With additional support from the government, particularly from the Ministry of Trade, he argued that the number of jobs could be significantly increased, further boosting employment opportunities for Kenyans.
Honda Kenya asserts that the ACE 150 has been specifically designed for the Kenyan market as part of its strategy to solidify its position as the leading supplier of motorcycles.
The company has so far produced over 130,000 motorcycles with an estimated production cost of Sh 3.6Billion.
“What this means is that each bike is supporting livelihood of six people and that amounts to 920,000 Kenyans who are being supported by the single motorcycle we have been making,” emphasized Kalua.
The company aims to cater to the needs of boda boda operators and individuals in the delivery business, enhancing accessibility and efficiency in these sectors.
Managing Director Honda Kenya Naiko Suiko assured that microfinancing options will be availed to Kenyans in the near future who intend to secure the ACE 150 motorcycle as a business tool to support their livelihood.
“Customers are struggling how to purchase this motorcycle so eventually in the future we will see how we an provide the motorcycle to our customers so they can move with it, ”Suiko said.
With the right incentives and support from the government, the motorcycle manufacturing industry could become a cornerstone of economic growth and job creation in Kenya.
