In a significant push for environmental sustainability, the Ugandan government has committed UGX 32.5 billion to support Kiira Motors Corporation (KMC) in completing its vehicle plant in Jinja.
This funding, aimed at boosting the production of electric buses, was highlighted in the national budget presented on June 13, 2024, by Minister for Finance, Planning and Economic Development, Hon Matia Kasaija, at the Kololo ceremonial ground.
"Kiira Motors has so far manufactured 39 buses, of which 27 are electric and 12 are low-emission diesel," Kasaija announced.
He noted that a new batch of electric buses was delivered on June 6, 2024, showcasing the government's commitment to Science, Technology, and Innovation (STI) as a key driver for economic growth.
(5).jpeg)
Kasaija highlighted that Kiira Motors currently employs 168 people across various departments including engineering, production, marketing and sales, and finance and administration.
"This number is expected to rise to 600 once the Jinja plant becomes fully operational, thereby addressing unemployment," he added.
President Yoweri Museveni, in his address, emphasized the environmental benefits of transitioning to electric vehicles, including buses and boda bodas.
"The production of electric vehicles will significantly reduce air pollution," Museveni stated. He underscored the importance of producing competitive products to enhance the country's economic capacity to create wealth."
In order for the economy to grow, we need to be competitive in the products we produce. Our products and services must be cheaper and of better quality than those from other countries,"
Museveni said, highlighting the need for quality and cost-effectiveness in Ugandan manufacturing.
(8).jpeg)
In addition to supporting Kiira Motors, Museveni revealed plans to commence the construction of the Standard Gauge Railway from Malaba to Kampala, extending to Mpondwe and later to Gulu–Nimule.
"The railway will transform Uganda’s capacity to create wealth. It will also save our roads from destruction by heavy trucks, cause less pollution, and consume less fuel," he explained.
This strategic investment in infrastructure and electric vehicle production aligns with Uganda's broader environmental and economic goals. The development of the railway and the expansion of Kiira Motors' production capabilities are expected to reduce Uganda’s carbon footprint, enhance logistics, and create employment opportunities.
(8).jpeg)
The government's pledge to fund Kiira Motors underscores its commitment to fostering innovation and sustainability in the automotive sector. By focusing on electric vehicle production, Uganda aims to position itself as a leader in green technology within the region.
As the country anticipates the full operational capacity of the Jinja plant and the commencement of the Standard Gauge Railway, these initiatives are poised to significantly impact Uganda's economic landscape, promoting sustainable development and environmental conservation.
