President Museveni articulates industrial vision as he commissions Kiira Vehicle Plant in Jinja

September 27, 2025 in Business, Companies, Technology & Telecoms, Trade & Industry, Transport by Editor

Uganda capped nearly two decades of automotive ambition and innovation on September 26 with President Yoweri Kaguta Museveni commissioning the Kiira Vehicle Plant (KVP) in Jinja, the most advanced bus and truck manufacturing facility on the African continent.

The plant, with an initial installed capacity of 2,500 vehicles annually, is designed to manufacture buses and trucks and has been accredited with international Vehicle Identification Number (VIN) certification, making it the first factory in Uganda producing vehicles that meet global manufacturing standards.

Speaking at the commissioning, President Museveni framed the achievement within Uganda’s wider industrialisation and growth agenda.

“Today, I commissioned the Kiira Vehicle Plant in Jinja. Uganda’s economy is currently growing at 7pc and is expected to exceed 10pc once our oil production begins,” Museveni said. “We have a clear vision for what will transform our society.”

Museveni revealed plans to process Uganda’s rich iron ore reserves into high-quality steel, which will significantly reduce dependence on steel imports that currently cost over USD900 million annually, while also advancing horizontal and vertical integration within the economy.

The plant, which can roll out up to 11 buses a day, comes as the latest milestone in Uganda’s journey that began in 2011 when Makerere University students unveiled the Kiira EV, Africa’s first electric car prototype. Since then, the vision has grown into a fully-fledged automotive industry project aligned with Uganda’s sustainable development goals.

In her remarks, Dr. Monica Musenero-Masanza, Minister for Science, Technology and Innovation in the Office of the President, hailed the plant as a continental landmark. “We have been making buses, but today we are unveiling for the whole world to see what we have built here. We are saying to the world: here we are, Africa here we are,” she declared.

The Kiira Vehicle Plant features an end-to-end production line, including a Body Shop, Paint Shop, Chassis Systems Shop, Trim and Assembly Shop, and a dedicated Quality Inspection and Testing facility complete with a Test Track. It also houses a Design and Engineering unit to drive research and innovation.

The commissioning positions Uganda to reduce an annual vehicle import bill estimated at over $800 million while creating more than 14,000 jobs across the automotive value chain. KMC has set a target of 65pc local content, which would stimulate domestic parts production and revive Jinja’s historic role as Uganda’s industrial hub.

Paul Isaac Musasisizi, the Chief Executive Officer of KMC, explained that the company is deliberate about catalysing local industries. “We are champions of local value addition, with a target to have 65% of our vehicle parts locally produced by 2030. We are already sourcing materials like auto paints, workshop supplies such as LPG, welding gas, adhesives, and foam from local suppliers, while also developing local capacity for components such as seats, glass, and ultimately EV battery,” Musasisizi noted.

KMC plans to scale up annual production to 10,000 vehicles in the medium term, expand its product portfolio to include coaches and a hybrid SUV, and deepen its role as a supplier of e-mobility solutions in line with Uganda’s 2050 Net-Zero Carbon Emissions target.

The commissioning of the Jinja plant marks Uganda’s entry into the elite club of nations with indigenous automotive manufacturing capabilities, underscoring its potential to lead Africa’s green mobility revolution.

Already, the company’s flagship Kayoola EVS electric city bus has attracted attention across Africa. The city of Dar es Salaam, Tanzania, has taken two electric buses for market validation. Designed for Africa’s road conditions, the buses feature Wi-Fi, USB charging ports, and real-time route updates, combining passenger comfort with environmental stewardship.