Kiira Vehicle Plant will save Uganda $800m says Museveni

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President Yoweri Museveni has commissioned the Kiira Vehicle Plant in Jinja, predicting that operating at full capacity, Uganda will save $800m (about sh2,787 trillion) currently spent on car imports.

The plant is the largest vehicle facility in Africa with a comprehensive motor vehicle production process.

Constructed by NEC Construction Works and Engineering Ltd, a subsidiary of National Enterprise Corporation (NEC) Kiira Vehicle manufacturing plant's five-year construction journey started in 2019.

After all vehicle production systems were fully installed, manufacturing started in March 2025 under Kiira Motors Corporation with an initial investment of $120 million (about sh418 billion) 

During the commissioning on Friday, President Museveni revealed how immense scientific innovations like the Vehicle Manufacturing Plant were contributing to the national economic growth of Uganda, saying it employs hundreds of Ugandan engineers, and it's poised to save the country $800 million from car imports. He also highlighted its positive impact on the country's balance of trade deficit on vehicles.

President Museveni further revealed plans to expedite iron ore exploration in Uganda.

He said that the availability of high-quality steel needed by the Kiira Vehicle Manufacturing Plant and other factories will reduce the $900 million (about sh3.1 Trillion) spent annually on importation of steel.

Uganda, he revealed, has some of the biggest iron ore deposits in the world in Kabale and Butogota.

“We have got some steel factories using scrap, but scrap isn’t good enough for this type of work; therefore, these new factories we are building will turn our iron ore into high-quality steel, which is needed here.

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

President Museveni also rallied Uganda scientists and leaders to focus on production for more sectors of the economy to address the huge haemorrhage of funds into importation. 

He explained that different sectors of the economy require complementary local production lines of their inputs that he described as vertical and horizontal economic integration needed for Uganda and Africa at large to thrive.

He reminded Ugandans and Africans in general to regain their self-confidence, focus on mechanisation, citing the example of the transformation of the dairy industry, a similar approach needed to produce lithium batteries and other products required for full economic integration.

He also warned Africans of stagnation due to their failure to comprehend and embrace the political economy that governs the evolution of society, which includes science and innovation. 

Hailing local researchers for recent milestones, President Museveni confirmed Uganda's invention of a diabetes, cancer and malaria cure, among other massive innovations and tasked scientists to venture into traditional solutions and modify them.

The Minister for Science, Technology and Innovation, Dr Monica Musenero.

The Minister for Science, Technology and Innovation, Dr Monica Musenero, affirmed the readiness of Uganda's knowledge economy to feed into the qualitative leap by venturing into more value chains.

She explained that Uganda’s missed phases of the industrial revolution are promptly being covered up through the exponential knowledge economy innovations like the Kiira Vehicle Manufacturing Plant and others.

Makerere University Council Chairperson, Mrs Lorna Magara.

Makerere University Council Chairperson, Mrs Lorna Magara, emphasised the need to enhance collaboration between academia and policymakers to aid the actualisation of research innovations.

Innovations like the Kiira Electric Vehicles she added began at Makerere University as a research prototype, but the visionary leadership of President Museveni nurtured the idea to the level of seeing the project's success as the maiden local vehicle manufacturing plant in Uganda.

Promising more successful projects, Magara requested the President to consider increasing the University's research and innovation funds.

Minister of Finance, Planning & Economic Development. Hon. Matia Kasaija.

Gen. (Rtd) Joram Mugume.

The National Enterprise Corporation board chairperson, Gen. (Rtd) Joram Mugume, commended the government for entrusting the army's engineering department to construct the vehicle manufacturing plant, which is a proper local content sourcing strategy.

Mr Paul Isaac Musasizi, the Kiira Motors Corporation Chief Executive Officer, revealed how the government's direct investment into the automobile industry will expedite the attainment of the 10-fold growth strategy.

Mr Musasizi said Kiira Motors Corporation is now focusing on rolling out a robust business model as they produce quality vehicles that meet the required standards.

He explained how the company is aiming to establish a robust industrial value chain for all vehicle inputs. 

Kiira Motors Corporation has so far produced 37 electric vehicles and 27 Diesel coaches. It has a production prospect of 2,500 vehicles in the medium term, 5,000 in the long term and 10,000 annual production by 2030.