Kenya could soon start manufacturing motorcycle spare parts following new regulations announced by the government.
National Treasury Cabinet Secretary Ukur Yatani recently gazetted the Tax Procedures (Unassembled Motorcycles) Regulations, 2020.
This will play a big role in jump-starting local assembly firms and create much needed jobs, in line with one of President Uhuru Kenyatta’s pillars in the Big Four Agenda.
Motorcycle Assemblers Association of Kenya (MAAK) Chairman Isaac Kalua said full implementation of the law could unlock Kenya’s potential in manufacturing.
“This legislation has paved the way for local manufacture of some motorcycle parts,” he said.
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Within the next three months, authorised manufacturers will be able to produce seven motorcycle parts locally. These include centre or main stands, crash guards, handle bars, battery liquid, side stand, kick stand, prop stand and foot rests.
“A further seven parts will be manufactured locally within the next 12 months. Most of what will now be manufactured locally include metal parts and battery fluid,” Mr Kalua told Weekend Business.
He said the manufacturing sector within first three months will create at least 4,000 jobs. This could instantly transform the motorcycle assembly sector into one of the biggest private sector employers.
“This will eventually save money for motorcycle buyers, and there is already a growing market for motorcycles in Kenya and the East African region,” said Kalua.
“The annual demand for motorcycles in Kenya is approximately 180,000 while in East Africa it is 680,000.”
However, he said, even as Kenya seeks to expand market reach, there was need to streamline and optimise the motorcycle economy.
There are an estimated 900,000 boda bodas in the country who make about 32.4 million rides daily, each earning an average Sh1,000 per day.