The government has pledged $143 million to support the recapitalization of Kiira Motors' vehicle manufacturing facility.

This announcement was made by President Yoweri Museveni during the commissioning of the Kiira Motors Vehicle Plant (KMVP), located in Jinja District, on Friday.

The president made this pledge following a briefing from KMVP CEO Paul Musasizi, who highlighted how the plant has, over time, spurred the creation of various industries that support the automotive value chain necessary for bus production.

Musasizi pointed out that several of these industries fall within sectors like steel and tube, and leather production, noting that they significantly contribute to enhancing local sourcing capacity. He added that they aim to achieve 65% local content utilization by the year 2030.

According to Musasizi, the plant currently provides direct employment to more than 407 individuals, whose expertise spans welding, painting, marketing, administration, and more—contributing greatly to the company's growth and operational stability.

He further informed the president that the plant has the capability to manufacture 11 buses each day, equating to an annual output of approximately 2,500 large vehicles.

Musasizi also stated that, with increased financial backing, the facility could scale up its operations to produce as many as 10,000 buses annually, a move expected to generate more employment opportunities for the youth.

In response, President Museveni expressed his appreciation for what he described as a vision that started with a small group of student researchers at Makerere University and has since evolved into the largest electric vehicle manufacturing plant on the African continent.

Museveni mentioned that he would collaborate with the Ministry of Finance to ensure that the necessary funds are released to support further advancements in this high-end electric vehicle manufacturing initiative.

He also disclosed that several investors have shown interest in Uganda’s automotive sector.

According to Museveni, the investments required to support local material sourcing and reduce reliance on costly imported inputs would be covered by these investors, whom he commended for recognizing the country’s growing potential in vehicle manufacturing.

The president noted that although Kiira heavily depends on steel in its manufacturing process, much of the locally sourced steel is derived from scrap, which he argued compromises quality.

He revealed that there are plans to begin producing steel directly from Uganda’s iron ore reserves—a step that would enable the manufacture of higher-quality steel suitable for automotive applications.

Minister of Science and Technology Monica Musenero stated that, with government funding, the Kiira Motors plant was fully completed within a span of four years.

Musenero noted that the facility sits on a 100-acre site, with expansion plans underway to unlock more opportunities for innovators within the automotive value chain.

She added that several government institutions, including Makerere University and the Civil Aviation Authority, have provided crucial support. She emphasized that such partnerships create both local and international demand for their products.