Kalua Green Advocates for Government Support to Boost Local Industries

The national government has been urged to provide incentives to local manufacturers and assemblers to stimulate economic growth and create more job opportunities, especially for young people. Dr. Isaac Kalua Green, Honda Kenya chairman and ecopreneur, emphasized the importance of supporting existing industries before seeking new industrialists to invest in Kenya.

“The future calls for us as a country to ensure that we do things starting from where we are. We cannot go calling for new industrialists to come to Kenya when the existing industries are feeling that they are not supported to the level that they need to be supported,” Dr. Kalua Green stated.

One of the key areas that the government should focus on, according to Dr. Kalua Green, is the motorcycle manufacturing industry. He highlighted the industry’s potential to employ over 5 million Kenyans, underscoring the significant impact it could have on the national economy.

“The greatest opportunity in our country is in the automotive sector. The lowest-hanging fruit is in the motorcycle. A motorcycle has over 290 different parts. Currently, these parts are imported from other countries. The policy should drive a very smooth transition from importing these parts to making them,” he said.

Presently, about 1 million people benefit directly or indirectly from the growing motorcycle business. Dr. Kalua Green argued that job creation hinges on a supportive working and production environment, advocating for equitable opportunities for all producers and manufacturers.

“Jobs can be created if the working environment, the production environment is supportive and the ground is level for every producer and every manufacturer. We seek that the government will support every industrialist whether small or big even as we go to get others because the foundation must be done from where we are before we move to the next level,” he emphasized.

Speaking as the chief guest at the launch of Honda’s latest motorcycle, the ACE 150, an improvement over the Ace 125, Dr. Kalua Green noted that 14 out of the 29 parts required for motorcycle assembly are currently produced in Kenya. He suggested that with government support, particularly from the Ministry of Trade, there could be a substantial increase in job creation and employment opportunities.

“When you are in the industry and you find that one producer is being given opportunities of not paying taxes and another is paying, it’s not a level playing ground and in fact, it chases away other investors. This country has an opportunity to make motorcycles, the regional market is over 1.5 million motorcycles, and you can imagine the parts and the employment opportunities that come with that. It’s a great thing,” he remarked.

Honda Kenya has produced 130,585 motorcycles, contributing Ksh 3.6 billion to the economy. Each motorcycle supports the livelihoods of six people, meaning approximately 920,000 Kenyans benefit from Honda’s production. Dr. Kalua Green called on policymakers to engage with current manufacturers to explore ways to enhance production and create job opportunities for millions.

On a similar note, Honda Kenya Managing Director Naiko Suiko highlighted the ACE 150 model’s suitability for the Kenyan market, particularly for boda boda operators and delivery businesses. He acknowledged the challenges customers face in purchasing motorcycles and expressed a commitment to finding ways to make them more accessible.

“Customers are struggling to purchase this motorcycle. Eventually in the future, we have to see how we can provide customers with a way to acquire our motorcycles for their good,” Suiko said.

The emphasis on government support for local industries, particularly in the automotive sector, underscores the need for policies that foster a conducive environment for growth and job creation. As Kenya continues to develop its industrial base, such initiatives could play a pivotal role in driving economic prosperity and improving livelihoods across the country.