Kiira motors seeks shs 524 billion to finance five year business plan

Kampala, Uganda | THE INDEPENDENT | Kiira Motors Corporation, a budding indigenous mobility enterprise in the country has presented a 524 billion Shillings proposed business investment budget to the Presidential Affairs Committee of Parliament.

It was contained in the Ministerial Policy Statement, and Budget Estimates for the FY 2024/2025. “We are counting on guidance and support from the government to explore sustainable, timely and innovative funding for the Corporation”, Paul Isaac Musasizi, the entity’s Chief Executive Officer told the Committee on Friday.

Operationalized in 2018, Kiira Motors is fully owned by the Government, and Makerere University with shareholding of 96 percent and 4 percent respectively.

The entity’s core business objective is to develop, make and sell sustainable mobility solutions (motor vehicles, parts, systems and services) in Africa.

Musasizi explained that Kiira Motors seeks to extend the value chain of material, harness the potential of innovative young people, substitute the importation of mobility solutions, and make the country a net source of e-mobility solutions. The Corporation’s five year-business plan already approved by the National Planning Authority – NPA spans 2023-2028 to progress the entity to cash flow positive status.

Among the key cost drivers in the five year-plan include the construction, tooling and furnishing Kiira Vehicle Plant – KVP; parts and materials for plant commissioning; master store, human capital and capacity development, business development, and operating expenses.

Denis Onekalit Amere, the Kitgum Municipality Kiira Motors stands as Uganda’s premier and substantive entity with practical skilling capabilities for the present and future automotive industry workforce which legislators must support through adequate appropriation.

The Committee Chairperson Jesca Ababiku, also the Adjumani District Woman Representative observed that building a native motor vehicle industry is consistent with Uganda’s aspirations and pathways to Vision 2040 outlined in the National Development Plan – NDP III.

In the current FY 2023/2024, the Corporation requires 80 billion shillings to operationalize the Vehicle Plant start up facilities in Jinja and parts and materials to produce 30 buses to consolidate the production skills of the team on the newly installed production line and enhance consumer confidence.

But the Ministry of Finance, Planning, and Economic Development appropriated 32.5 billion leaving a funding gap of 99.5 billion. Currently, the overall funding gap for the Corporation stands at 134.14 billion Shillings.

The government has so far capitalized the Corporation to the tune of 335 billion Shillings for the period between 2018 and 2023. The entity with an ambitious target of producing 150,000 vehicles annually by 2030 currently directly employs 168 staff in the engineering, production, finance, administration, marketing and sales and will rise to 600 once the KVP is commissioned.

As of March 2024, construction of the vehicle plant start-up facilities is at 86 percent completion and is projected to be ready for commissioning by October.

Since its establishment, Kiira Motors has produced 16 buses at National Enterprise Corporation – NEC Luweero Industries in Nakasongola which are on the road while 23 are on the production line.

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