Uganda opens Kiira Vehicle Plant, aims to slash $800 million in import costs

JINJA, Uganda — President Yoweri Museveni on Friday officially commissioned the Kiira Vehicle Plant, which the government says is the largest vehicle production facility in Africa and a major step toward economic self-sufficiency.

The plant, constructed between 2019 and 2024 by Kiira Motors Corp., or KMC, began manufacturing vehicles in March. The initial investment was $120 million. During the ceremony, Museveni said the domestic manufacturing operation would boost national economic growth and save the country approximately $800 million annually on vehicle imports.

The president emphasized the job creation for Ugandan engineers. “These young people I found in the factory have jobs,” Museveni asked. “Where would they be working if we didn’t have Kiira?”

He pledged government support to find high-quality steel needed for the factory, which currently relies heavily on imports. He noted that exploiting Uganda’s large iron ore deposits would reduce the $900 million currently spent yearly on steel imports.

“For the first time the transport sector is beginning to be integrated in the form of the Kiira vehicle plant,” Museveni said. “If we do it successfully, we shall save $800 million from steel alone.”

Minister for Science, Technology and Innovation Dr. Monica Musenero affirmed the readiness of Uganda’s knowledge economy to cover the three phases of the industrial revolution the nation had previously missed.

Museveni urged Ugandan scientists and leaders to focus on local production across all sectors to curb the “huge hemorrhage of funds” spent on imports. He advocated for vertical and horizontal economic integration—local production of complementary inputs—as the path for Uganda and Africa to thrive.

In a separate statement, Museveni claimed Uganda had invented cures for diseases including diabetes, cancer and malaria, and tasked scientists to modify traditional solutions. He also warned that African nations risk stagnation due to their failure to embrace the political economy that governs the evolution of society and technology.

Ms. Ronah Magara, chair of the Makerere University Council, requested increased funding for university research, noting that the Kiira project began as a university research prototype before the government supported its actualization. Gen. (Rtd) Joram Mugume, board chairman for the National Enterprise Corporation, commended the government for entrusting the military’s engineering department with the plant’s construction.

Paul Isaac Musasizi, chief executive officer of KMC, said the government’s direct investment would expedite the country’s 10-fold growth strategy. KMC has so far produced 37 electric vehicles and 27 diesel coaches. The company aims for an annual production of 2,500 vehicles in the medium term, and 10,000 by 2030.