Isuzu EA Banks on Manufacturing Policies,Tax Incentives to Spur Local Growth
By Harrison Kivisu
Email, thecoastnewspaper@gmail.con
Government review of the vehicle assembling regulations will boost local vehicle manufacturing sector if tax incentives remain resilient and competitive against importations, says Isuzu East Africa.
Isuzu EA managing director Rita Kavashe, speaking during the official unveiling of UD trucks into Kenyan market at Jomvu Total energies new service station on December 14, 2024, says the automotive policy now being rolled out by government will spur benefits and attract new investment for industry players.
“The automotive policy is now being rolled out and these are some of the benefits we are beginning to see, so going forward we expect more local manufacturing taking place,” she added.
Currently, Kenya does not have any regulations supporting local assembles, thus, making it difficult to attract new investment in the automotive sector.
But with this latest government move players prospects are high to significantly grow the industry in the country.
“The graph is going to shift significantly because of the good government incentives program, the riview of assembling regulations and the stability in the regulations.”
The MD notes that the review of the assembling regulations will see a total shift of assemblers versus used vehicle importers that in 2020 stood at almost 50-50 thus, inconveniencing the former.
However, with the government regulations intervention, the assembly sector, today, stands at 80 per cent against the 20 of importers.
Isuzu EA continues to expand its presence in the Kenyan motoring scene, and the re-entry of UD trucks into the Eastern Africa market with a new assembly line for such trucks puts it (Isuzu) in a good stud.
The Japanese firm, UD Trucks Corporation, in collaboration with Isuzu EA on Saturday (December 14, 2024) launched new long haul heavy-duty commercial truck range for the Eastern Africa market in Mombasa where infrastructure developments are driving demand for heavy-duty trucks.
Isuzu EA will lead the production, sales, and aftersales support for UD trucks in the regional market, thus creating job opportunities and promoting government manufacturing plan.
The MD says the launch of UD trucks signifies a sector growth confidence which will stimulate the government manufacturing plan.
“When you buy a UD truck today, it’s actually locally produced. Therefore, Isuzu acquiring the distributorship for UD trucks is actually a promotion of local manufacture in Kenya.”
Further, Mourad Hedna, President of UD Trucks MEENA, expressed confidence in the Isuzu company’s ability to deliver exceptional support to UD trucks customers in the country.
According to him the UD trucks company will continue to offer exceptional logistics business experience to its customers regionally.
“Logistics sector is a key player to the economy of Kenya and as UD trucks we pledge to continue supporting the development of the sector which is a big employer directly and indirectly,” he said.
