Kiira Motors Corporation, a nascent indigenous mobility enterprise in Uganda, has presented a proposed business investment budget of 524 billion Shillings to the Presidential Affairs Committee of Parliament. Led by CEO Paul Isaac Musasizi, the corporation emphasized the importance of government guidance and support in securing sustainable funding for its operations.
Established in 2018, Kiira Motors is a government-owned entity, with 96 percent ownership by the government and 4 percent by Makerere University. The corporation’s primary objective is to develop, manufacture, and sell sustainable mobility solutions, including motor vehicles, parts, systems, and services, with a focus on the African market.
Musasizi outlined Kiira Motors’ strategic goals, which include expanding the value chain of materials, leveraging the potential of young innovators, reducing reliance on imported mobility solutions, and positioning Uganda as a hub for e-mobility solutions. The corporation’s five-year business plan, approved by the National Planning Authority, spans 2023-2028 and aims to achieve cash flow positive status.
Key components of the five-year plan include the construction and equipping of the Kiira Vehicle Plant (KVP), procurement of parts and materials for plant commissioning, establishment of a master store, investment in human capital and capacity development, business development initiatives, and operational expenses.
Denis Onekalit Amere, representing Kitgum Municipality, emphasized the importance of supporting Kiira Motors as Uganda’s leading entity in the automotive industry, with capabilities to train the workforce for both current and future needs.
Committee Chairperson Jesca Ababiku, also the Adjumani District Woman Representative, highlighted the alignment of Kiira Motors’ objectives with Uganda’s long-term development vision outlined in Vision 2040 and the National Development Plan (NDP III).
In the current fiscal year 2023/2024, Kiira Motors requires 80 billion Shillings to operationalize the Vehicle Plant start-up facilities and produce 30 buses. However, the Ministry of Finance, Planning, and Economic Development allocated only 32.5 billion Shillings, leaving a significant funding gap.
Despite government capitalization of 335 billion Shillings between 2018 and 2023, Kiira Motors still faces a funding gap of 134.14 billion Shillings. The corporation, with ambitious targets of producing 150,000 vehicles annually by 2030, currently employs 168 staff, a number expected to rise to 600 upon commissioning of the KVP.
Construction of the vehicle plant start-up facilities is at 86 percent completion as of March 2024, with commissioning projected for October. Kiira Motors has already produced 16 buses at the National Enterprise Corporation Luweero Industries, with an additional 23 buses in production.
