Gok should buy into Mobibus by offering them National Machine plant and land

[Omollo]

I see no basis to assume that there will be many car manufacturers in Kenya. Unless you have information I don't, yours is wishful thinking.

If GoK can help expand Mobibus and nudge and motivate them to locate some parts of their manufacturing in other parts of Kenya, the industry at best could remain in Nairobi.

govt should only give tax incentives for a given period. Nothing else.

Right,Like it does to the EPZ on zero tax on raw materials,tax holiday and such things,and since there will be many car manufacturers with time,this incentive should be offered to all of them not just one....look at most state corporations,they are choked by corruption and most end up being privatised to realize their objectives,gov should keep off completely,

Without Prejudice.

[Mr Mansfield.]

I see no basis to assume that there will be many car manufacturers in Kenya.

We will have them with time just like we've had mobius which will start producing 500 vehicles from next year,There is low vehicle ownership in Africa,take a look at Kenya where ONLY 24 out of 1000 kenyans own vehicles VS an average of 800 in 1000 people in developed world,it means the region with the biggest market potential is Africa not USA,UK or Japan,we have cheap labor,the cost of energy is coming down which is one of the barriers,what the gov just needs to do is offer zero tax on raw materials,tax holiday and mobius needs to develop beautiful family vehicles and knock Japanese 60,000 annual car imports off the market slowly,gov should not be a share holder,Currently 35% cost of mobius vehicle cost is sourced domestically,incentive should be on 65% sourced outside,

Without Prejudice.

[Georgesoros]

As long as govt has no direct control, I will go for it. How about floating bonds? That will attract investment.

This is different. This is more like vodafone-GOK. Gok will not be owning it fully but jointly with folks who understand something about car business[mobius]. This has worked before. Hilton,Continentental,KQ,Kwal, name it....gov has shares..but management is with wazungus. If this was Nyayo car parastal (fully owned) they would not have sold 15 cars already...but these guys have bootstrapped few resources and produces some cars...they need a boost..and nobody else can risk the money part treasury risking our collective money...

That is SOP for growing industries..from infancy to maturity.

Most projects that govt invests in comes with political patronage, thats why am against govt. Giving land and tax incentives is OK. What I dislike is direct investment. Then corruption sets in and blah blah. We saw what happened to Nyayo car.

[Omollo]

Time... how many years?

We will have them with time just like we've had mobius which will start producing 500 vehicles from next year,There is low vehicle ownership in Africa,take a look at Kenya where ONLY 24 out of 1000 kenyans own vehicles VS an average of 800 in 1000 people in developed world,it means the region with the biggest market potential is Africa not USA,UK or Japan,we have cheap labor,the cost of energy is coming down which is one of the barriers,what the gov just needs to do is offer zero tax on raw materials,tax holiday and mobius needs to develop beautiful family vehicles and knock Japanese 60,000 annual car imports off the market slowly,gov should not be a share holder,Currently 35% cost of mobius vehicle cost is sourced domestically,incentive should be on 65% sourced outside,

Without Prejudice.

[gout]

the way I see govt supporting Mobius would be buying the cars and giving them to say chiefs in Eastern and NEP or ordering customised ones for anti stock theft units in pokot/turkana ..... county govts can also snap up this steel thing which requires little or no mainetenance...... 100 cars for a start would see Mobius break even, over 500 hundred direct jobs, tax, building kenyans technical capacity ..... that is just 100 million which is being used for one trip by kanjoras or keitany to bribe linturi and you got 50k change/kickback on each car

but you expect Mobius Jackson to be listed as a 'foreign agent' given we are being led by Moses Kuria mentality

[Olekoima]

Gov should exit mature industries and support infact industries like this car manufacturing....there is a lot of idle capacity in NMC which was suppose to manufacture cars...and now that private investors are doing so...gov can easily buy huge part of the shareholding...and support this industry.

http://www.businessdailyafrica.com/Corporate-News/Kenya-made-car-goes-on-sale-at-Sh950-000/-/539550/2497400/-/glyasbz/-/index.html

Indeed, they can easily supply the police with all the vehicles they need in short order.

[RVtitem]

Gov should exit mature industries and support infact industries like this car manufacturing....there is a lot of idle capacity in NMC which was suppose to manufacture cars...and now that private investors are doing so...gov can easily buy huge part of the shareholding...and support this industry.

http://www.businessdailyafrica.com/Corporate-News/Kenya-made-car-goes-on-sale-at-Sh950-000/-/539550/2497400/-/glyasbz/-/index.html

Indeed, they can easily supply the police with all the vehicles they need in short order.

The police will require custom made models that can speed at at least 250 kph to chase thugs and culprits. This model maxes at a mere 160 kph. Every thug escapes pursuit.

[RV Pundit]

Indeed. Those are great ideas.

the way I see govt supporting Mobius would be buying the cars and giving them to say chiefs in Eastern and NEP or ordering customised ones for anti stock theft units in pokot/turkana ..... county govts can also snap up this steel thing which requires little or no mainetenance...... 100 cars for a start would see Mobius break even, over 500 hundred direct jobs, tax, building kenyans technical capacity ..... that is just 100 million which is being used for one trip by kanjoras or keitany to bribe linturi and you got 50k change/kickback on each car

but you expect Mobius Jackson to be listed as a 'foreign agent' given we are being led by Moses Kuria mentality

[RV Pundit]

Really? How about we get them choppers. 90% of our kenya roads make it impossible to go past 30kms per hour. I am talking 90% of road network which are murram/dirty tracks with potholes and graters that only the NASA rover can go through. And this is the market that Mobius seem to be targeting...people in rural kenya just need a tough car with tough suspensions, tough body, possibly 4WD and less drama; no need for radio or AC or power windows or power steering.

The police will require custom made models that can speed at at least 250 kph to chase thugs and culprits. This model maxes at a mere 160 kph. Every thug escapes pursuit.

[gout]

people need to get off the highways to understand the state of road network in Kenya.....to get a picture of road network in Kenya .. I would put 60% of the feeder roads joining the famed thika road between githurai -thika as  rough roads - murram or just dusty paths 

that we still have handcarts even in Nairobi CBD just shows 1000 reasons why mobius needs all the support it can get from govt...

it would make more sense if karangi can even make it a KDF project stead of forcing uhuru to run around in fatigues  ..we have so much idle capacity given what barefoot NYS kids are doing in kibera with nearly zero shillings..

this country needs thousands of these experiments and only govt has the resources to support them; vulture capitalists can't do much given the disadvantages mobius is starting - with govt support the car can retail at even 300k ...

that it can carry 8 that would be great even for the public transport instead of people being stacked up in proboxes in most remote areas

[RV Pundit]

Precisely.

people need to get off the highways to understand the state of road network in Kenya.....to get a picture of road network in Kenya .. I would put 60% of the feeder roads joining the famed thika road between githurai -thika as  rough roads - murram or just dusty paths 

that we still have handcarts even in Nairobi CBD just shows 1000 reasons why mobius needs all the support it can get from govt...

it would make more sense if karangi can even make it a KDF project stead of forcing uhuru to run around in fatigues  ..we have so much idle capacity given what barefoot NYS kids are doing in kibera with nearly zero shillings..

this country needs thousands of these experiments and only govt has the resources to support them; vulture capitalists can't do much given the disadvantages mobius is starting - with govt support the car can retail at even 300k ...

that it can carry 8 that would be great even for the public transport instead of people being stacked up in proboxes in most remote areas

[RV Pundit]

Some of customer stories...
http://www.mobiusmotors.com/stories/juhudi.html

[kwesta]

I can bet in a few years we will see this car edging out Proboxes and Dx especially in rural Kenya both as a matatu and utility vehicle. Once it catches up with Kenyans I can bet some guys will have to wait up to two years for delivery of their car

[Omollo]

If GoK can arrange so that the price is like 300K per unit. The manufacturer can also help himself by launching a "luxury"! version which could then subsidize the cheaper version.

I can bet in a few years we will see this car edging out Proboxes and Dx especially in rural Kenya both as a matatu and utility vehicle. Once it catches up with Kenyans I can bet some guys will have to wait up to two years for delivery of their car

[Kim Jong-Un's Pajama Pants]

Some of customer stories...
http://www.mobiusmotors.com/stories/juhudi.html

A tough looking lady with ample proportions.  All counties should be buying this thing for police cars, ambulances etc.

[Brynn]

I will comment after I see the safety ratings. How well does that heavy metal steer and break along treacherous Mau escarpent with an overspending lorry coming in the opposite direction? lol. I'm assuming it's also supercheap because just by visual inspection fuel efficiency it's not its forte.

In good news this is how wakina Henry Ford invented the wheel over 100 years ago when American roads still looked like Mutuas Appian way. We are on the right track.

[Omollo]

You can't blame the manufacturer. GoK safety standards are not worth mentioning. They could come up with something which would require crashing of samples etc but that would put many mhindis out of business. They manufacture the buses you see on the road and manyangas that kill people all over the country. Those contraptions whether buses, mini buses or manyanga are as unsafe as it can get. The upper part is connect to the chassis by two of four thin bolts. The seats are linked to the already detached body by two thin bolts. Most passengers in crashes involving buses die from being squeezed between seats that get detached and push to the front.

One can import safe buses but the lack of standards means they seats are removed and local seats installed. The motive is to create more sitting capacity to make more money. Of course that compromises safety and comfort. I stopped using public transport eons ago because with my height it was just torture to seat in one of these. I was on several times asked to bend my knee. I had no idea how that is physiologically possible!

I guess I am saying Mobibus cannot fail a test that does not exist!

I will comment after I see the safety ratings. How well does that heavy metal steer and break along treacherous Mau escarpent with an overspending lorry coming in the opposite direction? lol. I'm assuming it's also supercheap because just by visual inspection fuel efficiency it's not its forte.

In good news this is how wakina Henry Forf invented the wheel over 100 years ago when American roads still looked like Mutuas Appian way. We are on the right track.

[Brynn]

Omollo....that makes sense Kabsa. I'm assuming that there are other failed African states that will join in the purchasing of these mahindra coz quite frankly it makes no sense to establish an assembly line for sub par vehicles to be consumed only by GOK. Sunk costs at taxpayer expense most of whom can't afford one.

[Omollo]

My support for them is so that they can survive long enough to improve their quality and compete against the best. We are still far away. Ayacko has not come through with Nuclear Energy and that rules out a cheap Iron and Steel industry that would allow the manufacture of most parts locally. It is up to the manufacturer to get his act together as fast as possible or face death.

Omollo....that makes sense Kabsa. I'm assuming that there are other failed African states that will join in the purchasing of these mahindra coz quite frankly it makes no sense to establish an assembly line for sub par vehicles to be consumed only by GOK. Sunk costs at taxpayer expense most of whom can't afford one.

[Brynn]

Omollo

Do you really believe that Kenya has the formidability to enter the auto industry competitively? I know you will say something along the lines of wakina South Korea but that comes along with a whole holstic economically progressive environment. I'm not shooting down the project, just providing food for thought. Quality 21st century manufacturing is a way of life, and to be honest with you the Kenyan way hardly displays that edge at the moment. But they could give it a shot, everything depends on markets though. As long as people buy to the point of autonomy there is a future.