Toyota to expand Kenya car assembly plant
What you need to know:
- Mobius Motors is the car maker while Thika-based Kenya Vehicle Manufacturers assembles the car that is designed for Africa’s rough terrain and off-road driving.
- The expansion of its vehicle plant is expected to have more competitively priced motor vehicles given the tax incentives on importation of completely knocked down units.
- He said Japan should increase flower imports by dealing directly with Kenyan investors instead of going through European auctions, which leads in delays in getting the products to the market.
A Japanese car manufacturer has announced plans to expand its vehicle assembly plant in Kenya.
Toyota Tsusho, in a statement from Tokyo, said a company team would look into the prospects of the multi-million shilling investment billed to significantly transform Kenya’s motor vehicle industry.
“We are keen to build on our investment portfolio in Kenya because of the country’s strategic position as a gateway to the East and Central African regions,” Toyota CEO Jun Karube said.
He spoke yesterday at the Kenya–Japan business forum in Tokyo attended by President Uhuru Kenyatta.
In 2013, Toyota Kenya opened a Sh500 million bus assembly plant in Changamwe, Mombasa, with a capacity to produce up to 200 units a month. This was the first plant of its kind set up by the Toyota subsidiary in Africa.
Speaking at the forum, Japan’s Economy, Trade and Industry Vice-Minister Shigeki Iwai lauded the “robust economic partnership” between Kenya and Japan.
He cited Toyota’s presence in Kenya, undertaking mega projects on public private partnership as an example of the growing cooperation between the two countries.
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The planned expansion of the assembly plant will improve its market share in Kenya currently dominated by General Motors East Africa, leading with new vehicle sales from its flagship Isuzu trucks and buses. Toyota has largely been confined to the small cars and trucks segment.
Having completed the 280-megawatt Olkaria IV Geothermal power plants in January, Toyota has set its focus on other projects including a unit of Olkaria I and V, and Olkaria VI. The company’s other fields of interest include Menengai, Akiira, Longonot, Baringo-Silali and Suswa power projects.
The expansion of its vehicle plant is expected to have more competitively priced motor vehicles given the tax incentives on importation of completely knocked down units.
The parts, which are used to assemble vehicles, are zero-rated while vehicles are subject to a 25 per cent import duty.
Last year, a Kenyan-made vehicle that is designated as Africa’s cheapest car, it the showrooms, bringing to reality the dream of an entrepreneur who designed it four years ago.
Trading under the brand name Mobius, it hit the market in October at Sh950,000, making it the lowest priced new vehicle in the country. Mobius Motors is the car maker while Thika-based Kenya Vehicle Manufacturers assembles the car that is designed for Africa’s rough terrain and off-road driving.
Meanwhile President Uhuru Kenyatta Monday told Kenyans and Japanese to engage more in joint ventures that will increase trade without exclusively benefiting traders from the Far East nation.
He said Japan should increase flower imports by dealing directly with Kenyan investors instead of going through European auctions, which leads in delays in getting the products to the market.
“I am happy to note that Kenyan flowers are gaining popularity in Japan because of the longer shelf life,” Mr Kenyatta said.
He was addressing the Kenya-Japan business forum in Tokyo at the conclusion of his five-day visit to the country. Representatives of about 100 Japanese firms, some of them in the Fortune 500 list, attended.
