Players in Kenya's motorbike assembly space are confident that the country has the potential to export the two-wheelers if proper regulations are instituted.
The players are calling for a re-look of the importation duties on parts meant for assembling motor bikes for exports.
Kibo Africa CEO Huib van de Grijspaarde said that importation duties for parts of bikes assembled in Kenya means they cannot compete at the global stage, because the cost is transferred to customers making them expensive.
“We need clever policy makers to put the right policies in place that will make us compete in a global playing field,” said Grijspaarde.
Kenya Association of Manufacturing chief operating officer Tobias Alando said that the lobby has been pushing for localisation of the motorbike manufacturing components locally, to boost the sector.
“What we are trying to push is to ensure that government incentivise companies that are localising their components. We are looking at global competitiveness so the tax administration and policy needs to be conducive,” said Olando
The two spoke during the unveiling of Kibo 250R, the firm’s third generation motorcycle which aims to improve urban mobility standards.
The motorcycle industry has been a booming one in the country with Kenya importing a record number of motorcycles in the second quarter of 2023.
Data from the Kenya National Bureau of Statistics (KNBS) shows the country imported 338,701 units between April and June last year, underlining the growing demand for the two- wheelers which have become the most common mode of transport in the country (boda bodas)
The number was a 15 fold growth of the 22,833 motorcycles imported in the first quarter of 2023.
This means that within just one quarter, the country has imported more motorcycles than it did in the entirety of 2022 (321,200).