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Government urged to offer incentives to local manufacturers of motorcycles

Honda Motors has challenged the National Government to offer incentives to local manufacturers and assemblers of motorcycles in an effort to spur economic growth and create more job opportunities for the young people.

Honda Kenya Managing Director (MD) Suiko Naoki said that the ACE 150 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.

Naoki maintained that Honda has been so strategic to help Kenyans on the numerous innovative ways to enhance their livelihood.

“Honda has been so strategic on how it can produce a tool for the last 5years and to try and see how users can save money, increase their business and move them to what they want to achieve,” stated Naoki.

The MD was speaking during the launch of the latest motorcycle Honda-ACE 150-an improvement of the Ace 125 model where he reiterated that Honda has taken 5years to create a product and together with the best company, deliberate in the world of motorcycles.

Naoki insisted that Honda motorcycles save lives and also help in lowering the usage in terms of saving the environment and efficiency and addition, also help Kenyans to save money enriching their lives.

Honda Kenya Chairman and entrepreneur Dr. Isaac Kalua Green cited the manufacturing industry as one of the key areas that the government should look into like the motorcycle industry, adding that it has the potential of employing over 5 million Kenyans.

“Currently, about 1 million people are benefiting either directly or indirectly in the growing business,” he disclosed.

Consequently, Dr. Green added that 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.

“The Ministry of Industrialization needs to make sure that every policy made at the moment can lead to greater opportunities for Kenyans since the greatest opportunity in the country is in the automotive sector and the lowest hanging fruit is in the motorcycle sector,” urged Dr. Green.

He noted that a motorcycle has about 290 different parts which are imported from different countries and therefore policy should drive a smooth transition from importing the parts to making them locally since Kenyans have participated in giving a road map of the motorcycle process and should start producing original 7 parts.

“Currently, the country is doing 14 parts so if the policy moves the transition smoothly, at least 50-70 percent of the country will be sorted in terms of jobs,” he observed.

He implored that currently, Kenya is working with 5 different local suppliers of the 14 parts and that Honda has paid 675million in the last 6 years and has employed 4000 Kenyans.

“The country has an opportunity to make motorcycles since the regional market is over 1.5 million of motorcycles that will increase employment opportunities aligned to that,” voiced Dr. Greeen.

He underscored that every rider is supporting the livelihood of 6 people amounting to 920,000 Kenyans being supported out of a single motorcycle made thus encouraging the government to sit down with current manufacturers and support 15 percent of manufacturers to create job opportunities for millions of people.

By Sharon Atieno

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