EAC prods Kenya to resume vehicles manufacture

Numerical Machining Complex CEO, George Onyango amidst an array of the Nyayo Pioneer cars that the corporation used to put together in the 1990s. Photo/ANTHONY KAMAU

Kenya could resume manufacturing vehicles if a plan by the East African Community succeeds.

Numerical Machining Complex (NMC), a State company that made the Nyayo Pioneer Car before it collapsed, has drawn the region’s interest to Kenya’s transport sector.

A draft EAC industrialisation strategy identifies the company as a vehicle in making Kenya the region’s automobile industry leader.

“A few industries do automobile assembly but they have not penetrated East Africa fully,” says the draft.

Though NMC has not been able to manufacture cars, the government recently revived the company to produce vehicle spare parts and small machines like water pumps and generators.

On Thursday, delegates met in Nairobi to discuss the proposed strategy.

The draft lists Kenya’s transport sector and automobile industry among key sectors that can spur development in the region.

The draft, The East African Industrialisation Strategy 2010-2030, was developed following a directive by EAC heads of state.

It says major motor market players in the region concentrate on import and export.

“It is important to develop this industry to strengthen the motor industry to meet growing demand,” says the draft, estimating that demand for imported vehicles in the region is US$1 billion (Sh80 billion).

In the plan, governments intend to collectively transform their economies to industrial ones through identified flagship industries.

Targeted industries are pharmaceuticals in Uganda, nuclear energy and agricultural equipment manufacture in Tanzania and Rwanda’s mobile telephony and ICT sector.