Manufacturers locally assembling vehicles in Kenya can heave a sigh of reprieve following President Uhuru Kenyatta’s directive to have reduced taxes for them.
On Monday when he unveiled the first locally assembled Mahindra double cabin pick-up at State House Nairobi, Uhuru directed the National Treasury to come up with ways aimed at reducing taxes for vehicles assembled in Kenya.
“Further, to make locally assembled vehicles more affordable and available to Kenyans, I have also directed that the National Treasury and the Ministry of Trade, Industry and Cooperatives hold discussions with financial institutions to create special products for locally assembled vehicles,” President Kenyatta stated.
Associated Vehicle Assembly (AVA Kenya), a subsidiary of Simba Corporation Limited assembled the Mahindra Scorpio double cabin and single cabin pick-ups at their Mombasa Plant.
President Kenyatta further asked the National Treasury to work on a framework in collaboration with the Industrialization Ministry in ensuring that the all tax incentives accrued from vehicle assemblies in Kenya benefit consumers.
Mahindra joins a list of other recognized brands which have their assembly plants in Kenya among them Toyota, Volkswagen and Peugeot.
Even as Mr Kenyatta launched the first of Mahindra’s locally assembled vehicle, Dt Dobie unveiled the first Volkswagen vehicle assembled in Thika on Monday.
The VW Tiguan Allspace, a 7-seater vehicle and larger than the normal Tiguan was manufactured in Thika at KVM.
DT Dobie said that it aims at expanding the sale of locally assembled vehicles in a bid to grow the VW brand in Kenya.
“We are committed to further expanding our line of locally assembled cars to grow our brand in the country,” said Matt Olivier, Director Business Development DT Dobie according to the Star.
