KIPPRA held a stakeholder consultative workshop on a study on motor vehicle industry value chain in Kenya. The workshop, which was held on 22nd November 2022 in Nairobi, brought together representatives from Micro and Small Enterprises Authority (MSEA), Kenya National Bureau of Statistics (KNBS), Ministry of Investment, Trade and Industry, Kenya Association of Manufacturers (KAM) and stakeholders from the motor vehicle industry. The KIPPRA team was led by the Executive Director Dr Rose Ngugi.
The study aimed to analyze motor vehicle industry value chain in Kenya with a focus on input, processing, and market levels. Moreover, the study assessed the role of key actors in the motor vehicle industry value chain in Kenya and constraints related to motor vehicle industry value chain. It drew lessons from policy strategies for development of motor vehicle industry value chains in selected countries.
Speaking at the workshop, KIPPRA Executive Director Dr Rose Ngugi thanked the participants for attending and noted that manufacturing of motor vehicles plays a key role in Kenya’s economy, contributing 7.6 per cent to the GDP in 2020.
KIPPRA Senior Policy Analyst Mr Adan Shibia presented the findings of the study and noted that there is more focus on processing level (assembling) compared to input and market level. Mr Shibia further explained that there was need to focus on manufacture of parts and components as it offers more employment opportunities compared to assembling.
The study recommends supporting development of upstream industry, particularly iron and steel due to its strategic role in the manufacturing of motor vehicles; strengthening of linkages between complementary input level industries and processing level industries; promotion of technology transfer and innovation; and leveraging on access to regional markets such as East African Community and the broader African Continental Free Trade Area (AfCFTA) among others given the motor industry is scale intensive.
KIPPRA got valuable input from stakeholders to fine-tune the report and inform further research agenda.
