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Government Pledges UGX32.5bn for Completion of Kiira Motors’ Industrial Plant

Kiira Motors Corporation among the significant achievements recorded by the government at the end of the financial year 2023/24.

The government has earmarked Science, Technology, and Innovation (STI) as a key catalyst for the qualitative leap to achieve tenfold growth of the country’s economy.

Minister of Finance, Planning, and Economic Development Hon. Matia Kasaija with the Financial Year 2024/25 budget. COURTESY PHOTO/PPU
Minister of Finance, Planning, and Economic Development Hon. Matia Kasaija with the Financial Year 2024/25 budget. COURTESY PHOTO/PPU

In the Budget reading speech that was held at the Kololo Independence Grounds on Thursday, June 13, the Minister of Finance, Planning, and Economic Development, Hon. Matia Kasaija remarked that at the end of the financial year 2023/24, building on investments made the government record significant achievements. Among the achievements was Kiira Motors Corporation (KMC), a state enterprise established to champion the development of the Domestic Automotive Value Chain for job and wealth creation and to commercialize the electric vehicle project.

The government has supported KMC in building 2,500 vehicles capacity per year. The facility has capabilities for bus and truck body manufacture, vehicle painting, powertrain manufacture, electrical & electronic systems, trim integration, production quality inspection, and testing. The government has pledged UGX32.5 billion to KMC in the next financial year to complete their state-of-the-art plant in Jinja Industrial Park.

The complex has so far manufactured 39 buses (Kayoola Coach and Kayoola EVS) of which 27 are electric and 12 are low-emission diesel. The company has managed to receive orders for more than 100 buses from Tanzania, South Africa, Eswatini, and Nigeria. This demonstrates the huge market potential for the vehicles.

KMC currently employs 168 people in engineering, production, marketing and sales, and finance and administration. “This employment number will increase to 600 once the plant in Jinja is fully operational,” Kasaija said during the budget reading yesterday.

KMC is also onboarding several partners to support the deployment and distribution of fast-charging infrastructure, ensuring a seamless electric vehicle ownership experience is aligned with the National E-Mobility Strategy.

While speaking at the launch of eight 8-meter Kayoola EVS buses produced at Luweero Industries Limited in Nakasongola, Prof. Sandy Stevens Tickodri-Togboa, Kiira Motors’ Executive Chairman, said, “Uganda’s push towards becoming a net source of e-Mobility Solutions in Africa is steadily getting closer, and we are proud to contribute to this agenda. This progress is due to our strategic partnership with National Enterprise Corporation and its Luwero Industries Limited subsidiary.”

An aerial shot showing the eight 8-meter Kayoola EVS buses produced at Luweero Industries Limited in Nakasongola. PHOTO: Kiira Motors Corporation
An aerial shot showing the eight 8-meter Kayoola EVS buses produced at Luweero Industries Limited in Nakasongola. PHOTO: Kiira Motors Corporation

Tickodri-Togboa emphasized the need for Ugandans in both the private and public sectors to adopt environmentally sustainable mass transport solutions that offer quality and value for money, especially since Kampala’s air is nine times more polluted than the WHO’s recommended limit.

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On another matter, Kasaija highlighted the government’s support towards the rapid human capital development of the Aerospace Programme which is training Ugandan engineers in Japan, China, and Egypt.

The government has partially refurbished the headquarters of the Space Programme, the Mpoma Satellite Earth Station to enhance weather prediction and monitoring of landslides and the environment.

“Government will support completion of these initiatives including the establishment of a satellite development laboratory and a modern Geospatial Centre to be able to obtain data from a broad spectrum of satellites from partner Nations,” said Kasaija.

This year’s National Budget reading was themed “Full Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation, and Market Access”.

ALSO READ: OP-ED: TRANSPORTATION GRADUALLY GETTING ELECTRIC AND MORE DIGITALIZED IN UGANDA

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Joan Banura

Joan Banura is an aspiring journalist with a passion for all things tech. She is committed to providing insightful and thought-provoking content that keeps our readers informed and engaged.
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