Kiira Motors Corporation has presented a Shs524 billion investment budget to the Presidential Affairs Committee of Parliament. The budget proposal was contained in the Ministerial Policy Statement and Budget Estimates for the FY 2024/2025.

“We are counting on guidance and support from the government to explore sustainable, timely and innovative funding for the Corporation”, Paul Isaac Musasizi, the Corporation’s Chief Executive Officer told the Committee on Friday.

Kiira Motors is fully owned by the Government and Makerere University with shareholding of 96 percent and 4 percent respectively. Its core business objective is to develop, make and sell motor vehicles, parts, systems and services in Africa.

Musasizi explained that Kiira Motors seeks to extend the value chain of material, harness the potential of innovative young people, substitute the importation of mobility solutions, and make the country a net source of e-mobility solutions.

The Corporation’s five year-business plan already approved by the National Planning Authority (NPA) spans 2023-2028 to progress the entity to cash flow positive status.

Among the key cost drivers in the five year-plan include the construction, tooling and furnishing Kiira Vehicle Plant (KVP); parts and materials for plant commissioning; master store, human capital and capacity development, business development, and operating expenses.

In the current FY 2023/2024, the Corporation requires Shs80 billion to operationalize the Vehicle Plant startup facilities in Jinja and parts and materials to produce 30 buses to consolidate the production skills of the team on the newly installed production line and enhance consumer confidence.

But the Ministry of Finance, Planning, and Economic Development appropriated Shs32.5 billion leaving a funding gap of Shs99.5 billion. Currently, the overall funding gap for the Corporation stands at Shs134.14 billion.

As of March 2024, construction of the vehicle plant start-up facilities is at 86 percent completion and is projected to be ready for commissioning by October.

Since its establishment, Kiira Motors has produced 16 buses at National Enterprise Corporation – NEC Luweero Industries in Nakasongola which are on the road while 23 are on the production line.

URN