EDITORIAL: Support car assemblies

Used cars at yard in Mombasa. FILE PHOTO | NMG

What you need to know:

  • Simba Corporation’s announcement that it will assemble cars in the country will see it join an expanding list of passenger vehicle producers in Kenya.
  • Others are French carmaker Peugeot and Germany’s Volkswagen as well as Toyota, Nissan and Mitsubishi.

Simba Corporation’s announcement that it will assemble cars in the country will see it join an expanding list of passenger vehicle producers in Kenya.

Others are French carmaker Peugeot and Germany’s Volkswagen as well as Toyota, Nissan and Mitsubishi.

Last month Portugal-based Salvador Caetano Group said it is in talks to start local production of low-cost Hyundai and Renault brands.

Simba will produce the Malaysian car brand Proton, which manufactures models such as sedans, hatchbacks and SUVs.

It is encouraging to see assemblers increasingly take advantage of tax incentives that will strengthen manufacturing.

At the same time, it will create jobs as well as support skills transfer.

In the 1990s Kenya had a thriving local assembly that was hurt with policies that encouraged cheap used-car imports.

But the government has now turned focus and pledged to prioritise purchase of vehicles assembled locally as part of incentives to attract more global automakers.

The increased local production will offer affordable route to owning new cars with relatively cheaper pricing than imported ones.

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