Kenya should create an ideal business environment, including lowering select taxes, to promote local assembly of motor vehicles as a strategy to create jobs and accelerate economic growth.

The appeal comes as the state moves to support the sector through the recently approved National Automotive Policy to spur industry growth. The government is also considering introducing a Ksh13 billion affordable credit financing kitty to support players in the automotive sector.

To regulate the importation of parts such as batteries, authorities have implemented incentives and tax measures, including a duty remission scheme.

Speaking during an Iftar dinner organised by Trans-Africa Motors Limited, Kenya National Chamber of Commerce and Industry (KNCCI) Mombasa Chapter Chair Abud Jamal said a conducive business environment would attract more investors and make Kenyan firms more competitive within the region.

“My plea to the national government is to facilitate investments by creating an enabling environment for such ventures in our country, to ensure we provide a platform that makes them competitive across the East African region,” Jamal said.

He noted that Trans-Africa Motors plays a pivotal role in transport and logistics as the main distributor of Chinese-made FAW trucks.

“FAW is among the most reliable vehicle brands from the Chinese market. They have captured a significant share of the East African market. We appreciate their contribution because they play a vital role in ensuring logistics, essential services and goods are efficiently distributed across the country,” he added.

The KNCCI chairman emphasised that business people are key drivers of national development and therefore deserve policy support. He underscored the importance of local motor vehicle assembly in creating employment and advancing the government’s manufacturing agenda.

“From a logistics perspective, importing completely knocked down (CKD) or semi-knocked down units helps save on freight costs and duties. This allows companies to offer more competitive prices to businesses seeking to invest in or purchase the units,” he explained.

Trans Motors General Manager Faiz Abdallah revealed that the company’s products have dominated the regional market for the past three years and that the firm is looking to expand further, leveraging opportunities presented by the upcoming Dongo Kundu Special Economic Zone to cement its position as a market leader.

“We are encouraged by developments around the Special Economic Zone and hope to benefit in the near future. For now, we are satisfied with the current CKD importation arrangement,” Abdallah said.

He observed that the logistics industry has rebounded strongly but noted that more government support is needed.

“The logistics sector is very robust and has bounced back. The government can do much more in terms of improving roads and lowering certain taxes. This will enhance uptake of our units and improve profitability for logistics players,” he said.

Abdallah added that the firm, which employs over 500 people, is currently the market leader in the logistics industry and the most preferred brand in East and Central Africa.

“If the economic situation improves, we intend to expand further and create more employment opportunities,” he pledged.

Customers, associates and business partners later shared a meal after a day-long fast, in an event organised to foster unity and strengthen relationships among stakeholders.

“We took time to reflect and gather in an informal setting over a meal with our brothers, associates and business partners. In the spirit of Ramadhan, we remember our Lord and promote brotherhood,” he said.

• A Tell Media / KNA report / By Sadik Hassan