President Uhuru Kenyatta on Monday in Nairobi 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 the port city of Mombasa.
Speaking during the launch, 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.
AVA is a wholly owned subsidiary of Simba Corporation, one of Kenya’s most successful indigenous commercial organizations with a very rich heritage in motor vehicle sales and service.
“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.
Kenyatta 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, 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.
He 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.
JK/abj/APA