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STATE PROCUREMENT

Eighteen motor firms tender for state supplies

In Summary

Twelve vehicles and six motorcycles local assembling firms have submitted their bids to supply state agencies with the new transport systems.

The firms would all stand to be awarded if they all meet the guidelines.

General Motors Motor Vehicles assembly plant head office situated along Nairobi-Mombasa road.
General Motors Motor Vehicles assembly plant head office situated along Nairobi-Mombasa road.
Image: FILE

Twelve vehicle and six motorcycle local assembling firms have  tendered to supply state agencies with new transport machines.

Government Supplies officer Elisha Abongo said the office has received bids  which currently are being evaluated before procurement is done.

“We will have to evaluate the firms to certify if they meet requirements and to prove they actually supply what is assembled in Kenya and not imported,” Abongo said.

He said all the applicants stand to be awarded if they meet at the requirements.

“Once we finish the process, we will thereafter give circulars to the agencies to begin buying from the local tenderers,” he said.

In his budget statement, National Treasury Cabinet secretary Henry Rotich announced that from July 1, all government vehicles must be procured only from local assembling plants to promote local industries.

The policy also entails a standardised institutional framework for fleet management and use of fuel cards across government officials in order to improve efficiency and cut cost.

Some of the motor assembly plants include Isuzu East Africa Limited in Nairobi, Associated Vehicle Assemblies in Mombasa and Kenya Vehicle Manufacturers in Thika.

Motorcycle assemblers include among others Toyota, Auto Industry limited, Makindu motors, Car and General, Honda and Ryce East Africa.

With the government intending to reduce its expenditure on imported equipment, the spring of the plants could see increase in tax to Kenya Revenue Authority from higher sales and regional export markets.

In 2017, the commercial car assembly industry contributed annual tax revenues to a tune of Sh8 billion ($80 million).

The total installed capacity for assembly of motor vehicles is 34,000 units per year on single shift alone and over 100,000 on three shifts.

The directive adheres to the developing national automotive policy set to support the industry, and a directive issued by President Uhuru Kenyatta in March to all government entities to buy locally assembled vehicles and spare parts manufactured in Kenya for official government use.