Honda Kenya targets more local parts in motorbike assembly

2 Min Read

Honda Kenya is targeting to increase local manufacturing of various components for its motorcycles in a bid to meet local and regional demand that is estimated to be at least 1.5 million.

According to Chairman Dr Isaac Kalua, enhanced incentives could see Kenya become a competitive hub for manufacturing and assembly of motorbikes.

“Currently these parts are imported from other countries. Policy should drive a very smooth transition from importing these parts to making them,” said Dr Isaac Kalua.

Speaking during the launch of its latest motorbike, ACE150, Kalua said the automotive manufacturer currently imports 14 out of 29 parts needed for the assembly of the bikes.

“Currently we are working only with five different local suppliers for the 14 parts. In the last few years that we have been working with them, Honda has paid Ksh 675m to them,” added Dr Kalua.

The firm now calls for enhanced government incentives to support the automotive industry which has the potential to create at least five million jobs.

Honda says the latest addition is tailor-made for the Kenyan market as the firm seeks to strengthen its position as a market leader in the boda boda and delivery segments of the transport industry.

“This product was genuinely produced for the Kenyan market. It a one country oriented development and I am confident it will give Kenyan customers value,” Naoki Suiko, Managing Director, Honda Kenya.

According to Honda Kenya, it has so far invested at least Ksh 3.5 billion in Kenya, producing at least 130,000 bikes.

Share This Article