Kiira Motors seeks UGX524 billion to fund 5-year plan

Peter 25th Mar, 2024 Industry Pedson Mumbere
Kiira Motors seeks UGX524 billion to fund 5-year plan

HI-TECH: Some of the Kiira Motors buses on the road. The corporation hopes to build a capacity of producing 22 buses per day. FILE PHOTO/BUSINESS EDGE

Kiira Motors Corporation, a budding indigenous vehicle building enterprise, has presented a UGX524 billion 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 CEO, told the Committee on March 22.

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 (electric motor vehicles, parts, systems and services) across the continent.

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, which is already approved by the National Planning Authority (NPA), spans 2023-2028 to progress the entity to positive cash-flow 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 MP, said Kiira Motors stands as Uganda's premier and substantive entity with practical skilling capabilities for the present and future automotive industry workforce, which Parliament must support through adequate appropriation.

Committee Chairperson Jesca Ababiku (Adjumani District Woman MP) 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 UGX80 billion to operationalize the Vehicle Plant startup 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 just UGX32.5 billion leaving a funding gap of UGX99.5 billion. Currently, the overall funding gap for the Corporation stands at UGX134 billion.

The government has so far capitalized the Corporation to the tune of UGX335 billion for the period 2018 - 2023. The entity with an ambitious target of producing 5,000 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.

  • In April 2022, President Yoweri Museveni said government would take the lead in buying electric buses produced by the Corporation, for use by for the different Ministries, Agencies and Department and public academic institutions.
  • 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 the National Enterprise Corporation - NEC Luweero Industries in Nakasongola District, which are on the road while 23 are on the production line.

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