President Uhuru Kenya warned private sector players against sabotaging government policy to favor locally produced goods in government procurement.
The president said that someone
said that investors interested in winning public procurement auctions, especially in the automotive sector, should engage in local assembly or manufacturing activities.
'The public sector has clear instructions to give priority to locally-installed vehicles in their procurement decisions. However, I note with concern that some of the participants in the automotive sector are actively fighting this government initiative to support investment in local vehicle assembly, "he said.
The Head of State stated participants in the private sector they must always put the country's interests first and align their business models with Kenya's development aspirations.
"As we execute Kenya's purchasing program, we expect the private sector to respond by introducing esters in full car production; from joint ventures, training and capacity building of local small and medium-sized enterprises (SMEs) to providing local content resources, "he said.
The president challenged Toyota to increase its investment in Kenya by
Mr Kenyatta further stated that the Government was working on a national car policy as part of the support measures for local transport. vehicle manufacturer,
He instructed Cabinet Secretary for Trade, Industry and Cooperatives Peter Muni to submit the cabinet policy for approval within three weeks.
"The overall policy objective is to provide our domestic industry with opportunities to compete in the production of vehicles and parts," the President said.
policy will, among other provisions, establish the legal and institutional framework necessary to ensure regulatory certainty for investors.  It will also define the desired levels of car and motorcycle reduction kits, as well as formulate fiscal incentives and other measures necessary to stimulate local content development.
The policy will also outline the role of technical and vocational education and training (TVET) in the development of the automotive industry.
President Kenya stated that Kenya is positioned to take advantage of the huge market created by the adoption of the African Continental Free Trade Area (AfCFTA), which has a huge market potential of 1.27 billion people.
Toyota invests Shs1 billion in a new assembly line designed to assemble the new Hilux 4×4 pickup trucks.
The Kenyan motor vehicle assembly industry registers an annual turnover of $ 600 million (including regional dealers) in 2018. It employs more than 12,000 people.
Volkswagen and Peugeot have opened new production lines in Kenya over the past two years, while General M otors has significantly increased its investment in local heavy-duty vehicle assembly.