President William Ruto has asked security agencies to purchase locally assembled vehicles.
This is in a bid to encourage and sustain the operations of local motor vehicle manufacturers.
He said the national automotive policy has increased the purchase of local vehicles, specifically through leasing, which has boosted MSMEs engaged in maintenance throughout the country.
Ruto said the change of the assembly regulations to allow different levels of vehicle assembly eased entry for new investors and products into the Kenyan industry, with the assembly of pick-ups and passenger vehicles resuming.
"There has been increased local production of vehicles, while new vehicle sales have shifted from fully-built units to locally produced, or completely knocked-down units," he said.
He spoke on Wednesday during the official opening of the Electro-Deposition Paint Plant by Isuzu East Africa in Nairobi.
The President has introduced several policy measures to ensure that the motor industry in the country operates in a favourable environment aimed at expanding the sector.
He said the government will continue to promote local assemblers by buying the vehicles locally.
This is part of efforts to boost companies manufacturing goods locally from the available raw materials.
"The government decided to buy locally assembled vehicles in order to promote home-grown manufacturing."
He added that the government will expand the vehicle leasing programme to include the military, police, NYS and ministries.
"But before we lease these vehicles, we must be guaranteed that they are locally manufactured vehicles employing Kenyans," he said.
Ruto noted that the country currently has one original equipment manufacturer, five motor vehicle assemblers and 32 registered motorcycle assemblers.
"Together, they assemble 46,000 vehicles and 300,000 motorcycles annually and even at the current 25-30 percent capacity, they support around 100,000 direct and indirect jobs," he said.
He said the country's ambition was not just for the assemblers to operate at full capacity, but more to set up, so that Kenya can supply the African market with globally competitive units, create more jobs and enhance skill development, as well as promote safe and eco-friendly mobility that is reliable.
He further said with investments like the electro-deposition paint plant by Isuzu EA and its overall expansion and upgrading project, Kenya can lead African automotive competitiveness throughout the AfCFTA.
Ruto added that Kenya was keen on fully exploiting the immense opportunity presented in the form of its automotive industry’s untapped potential.
"We shall listen, partner, collaborate and engage industry actors in a committed and intentional manner until the share of the automotive industry in manufacturing, as well as the share of manufacturing to GDP moves sharply in a positive direction," he said.
Chairman Isuzu East Africa Hiroshi Hisatomi said Kenya has the potential and raw materials to locally assembled vehicles.
"Kenya has an important market for locally assembled vehicles. We will soon expand our operations to other East African countries," he said.
Deputy Chief of Mission Counsellor, Embassy of Japan Kitagawa Yasuhisha lauded the diplomatic ties between the two countries, saying it has enabled companies from his country to operate in Kenya.
"Today, we are increasing our investments in Kenya because of good diplomatic ties between our two countries. Kenya is able to grow its manufacturing capacity because of the available raw materials," he said.
At the same time, Managing Director Isuzu East Africa Rita Kavashe said the company has so far paid more than Sh21 billion as taxes besides creating job opportunities for Kenyans.
Kavashe urged the government to explore ways of solving the problem of pending bills.
