Ms Rita Kavashe, the managing director, General Motors East Africa. PHOTO | FILE
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The Sh500 million investment which includes a plant with capacity to assemble 2,000 vehicle bodies annually is expected to take a year to complete.
A General Motors East Africa (GMEA) dealer is set to employ over 500 workers for its new workshop, showroom and body-building plant.
The additional workers will increase to 800 the number of people employed by Kenya Coach Industries (KCI), which Tuesday broke ground at the new site on Mombasa Road where it intends to construct the facilities.
The Sh500 million investment which includes a plant with capacity to assemble 2,000 vehicle bodies annually is expected to take a year to complete.
“The showroom will have a capacity of 20 vehicles from the different ranges and it will have 40 service bays and hold enough parts for that,” said Narain Singh Sokhi, managing director of KCI.
The five-acre space will have a showroom, service workshop and bus body building facility for its Isuzu and Chevrolet lines.
The move will boost job creation in the auto sector, which has been struggling to recover due to cheap second-hand imports and concerns over their quality standards.
Commercial vehicles such as pick-ups, trucks and buses account for 40 per cent of Kenya’s new vehicles market that has been growing steadily with increased demand from sectors such public transport, haulage and agribusiness.
GMEA general manager Rita Kaveshe attributed the growth in business to increased demand from the government, logistic firms and public transport operators.
The growing preference for local assembly is expected to create more jobs and reduce idle capacity.
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