Kalua Green says Gov’t directly supporting local industries is vital

 

Dr. Kalua Green

The national government has been challenged to offer incentives to local manufacturers and assemblers to spur economic growth and create more job opportunities for young people.

“The future calls for us as a country to ensure that we do things starting from where we are. We cannot go calling for new industrialists to come to Kenya when the existing industries are feeling that they are not supported to the level that they need to be supported,” Honda Kenya chairman and ecopreneur Dr. Isaac Kalua Green said

Dr. Kalua Green says one of the key areas that the government should look into is the motorcycle manufacturing industry, which he says has the potential to employ over 5 million Kenyans.

“The greatest opportunity in our country is in the automotive sector. The lowest-hanging fruit is in the motorcycle. A motorcycle has over 290 different parts. Currently, these parts are imported from other countries. The policy should drive a very smooth transition from importing these parts to making them,” he said

Currently, about 1 million people are benefiting either directly or indirectly from the growing business.

“Jobs can be created if the working environment, the production environment is supportive and the ground is level for every producer and every manufacturer. We seek that the government will support every industrialist whether small or big even as we go to get others because the foundation must be done from where we are before we move to the next level,” he said

Consequently, Dr. Green who was the chief guest at the launch of the latest motorcycle from Honda – ACE 150 – an improvement of the Ace 125 currently under their fold, said at the moment, 14 out of the 29 parts needed for the assembly of a motorcycle were being produced in the country, and thus, with support from the government, through the ministry of trade, would increase access to jobs and more employment opportunities.

When you are in the industry and you find that one producer is being given opportunities of not paying taxes and another is paying, it’s not a level playing ground and in fact, it chases away other investors. This country has an opportunity to make motorcycles, the regional market is over 1.5 million motorcycles, and you can imagine the parts and the employment opportunities that come with that. It’s a great thing,”

Honda alone has produced 130,585 motorcycles. We have paid Ksh.3.6 billion for that production. It also means employment for each bike. Each rider supports the livelihoods of six people. That amounts to about 920,000 Kenyans who are being supported by each of the motorcycles that we have made.  Policymakers should sit down with the current manufacturers and ask them what they can do for them to continue producing more. You can support 15 percent of the manufacturers to create job opportunities for millions of people,” he explained.

On its part, Honda Kenya MD Naiko Suiko says the ACE 150 model has been made for the Kenyan market as it now strives to cement its position as a market leader for motorcycles accessible to boda boda operators and those in the delivery businesses.

“Customers are struggling to purchase this motorcycle. Eventually in the future, we have to see how we can provide customers with a way to acquire our motorcycles for their good,” he said

BY KBC NEWS