Nairobi-based Labh Singh Harnam Singh (LSHS) Limited, a bus body-builder firm, has received an order to build high-capacity buses for Tanzania’s Bus Rapid Transit (BRT) system.
Interestingly, Cabinet Secretary Transport James Macharia recently said Kenya is negotiating a deal with a South African company to import 30 high-capacity buses.
“We chose South Africa because those buses were ready and it’s quite near. So upon completion of the negotiations, which we will be having this week, we anticipate that after payment they should come within a week or two,” he said.
Is Kenya Making the Wrong Decision?
Mr Daniel Maundu, the managing director of LSHS and the chairman of the Kenya Bus Body Builders Association said they are building the first order after the Tanzanian government contracted Isuzu Motors to build the first 80-passenger capacity buses for the BRT program.
In addition, Mr Maundu believes that the Ministry’s plan to import buses from South Africa works against the government’s Big Four agenda which promises to support the manufacturing sector.
On the other hand, importing the buses will cost Kenya Sh500 million and on top of that, export jobs to an economy that’s already more advanced.
“Our work benefits many companies that manufacture various products from batteries to springs, gaskets, lubricants, iron bars and sheets among other items. It is a vibrant supply chain that if activated could directly benefit 6,000 people employed across the industries,” said Mr Maundu adding that most body-building and auto assembly companies are laying off staff to cut down on operational costs because of declining business in the sector.
“We have [the] capacity to meet any demand within Kenya and have built adequate factories and manpower over the past decades. Kenya has three motor vehicle assemblers and 12 body-builders and the plan to import fully built buses will deny us the much-needed business especially after a tough 2017,” he said.
Kenya has 70-years of experience in building buses and Tanzania recognises this. Initially, the Tanzanian government had imported BRT buses from China.
