Phillip Ochieng, 49, is a Nairobi delivery driver. He is the company's primary driver and manager in the nation's capital. The medium-sized company's fleet comprises 47 Chinese-made vehicles. Medium-sized Chinese-made vehicles typically cost $34,000, which is far cheaper than comparable trucks from competing manufacturers, which cost around $62,000.
The bulk of delivery companies, including mine, prefer Chinese-made cars. So we operate Beiqi Foton trucks. "We deliver everything heavy," remarked Ochieng, the company's manager for the past ten years. Chinese automobiles, in my opinion, are easy to drive and provide excellent interior comfort. Nobody could have expected that Chinese autos would have such an influence on public transit eight years ago, according to Ochieng. He believes that Isuzu and Toyota used to be market leaders, but this is changing.
Government assistance
Unlike importing automobiles, the Ministry of Industrialization, Trade, and Enterprise Development claim that Beiqi Foton vehicle brands are available at wholesale costs.
"This is attributable, in part, to the fact that the autos are made locally, as well as the government's cut in auto part tax." Foton was the first Chinese firm to do so, according to the ministry's Cabinet Secretary (Minister) Betty Maina, in mid-2014. She also stated that the objective is to enhance mass production to compete with global manufacturers. According to the Ministry of Transport, Infrastructure, Housing, and Urban Development, one in every three Kenyan automobile customers buys or owns a Chinese-made vehicle. Since January 2019, sales have been progressively increasing.
According to data, the data shows that fifteen thousand four hundred forty-four automobiles were sold and registered in 2019. Many were for military, police, public transportation, and personal use.
Employment provider
This implies that this industry will provide more direct local employment. For example, according to the Ministry of Labor and Social Protection, Chinese automakers have produced more than 40,000 direct jobs in Kenya. Chery Automobile, a Chinese automaker, sold over 20,000 vehicles in Africa in 2019, with 3,000 delivered in Kenya. It also has a regional headquarters and an assembly plant in Nairobi. The firm anticipates even more success in Kenya this year. Chery's assembly plant in the capital is one of 16 worldwide.
Analysts believe that if Chinese manufacturers invest extensively in Kenya's transportation business, more local jobs will be created.
"In 2019, we had good sales not only in Kenya, where over 3,000 automobiles were sold but throughout the region. In addition, the police purchased trucks from us that were anti-riot vehicles. However, sales to public transportation firms were our biggest. Despite the rising demand, COVID-19 presented us with difficulties last year, "he added.
While the COVID-19 outbreak is a danger to the economy, sales have been strong in the first two months of 2021. Most automobile manufacturers in Kenya work with banks to provide financing to potential consumers with stable jobs and good credit history. Economists like Shikwati expect that one of every two cars sold in Kenya will be a Chinese brand during the next two to three years.