A local company has partnered with a German heavy machinery maker in a Sh23 billion venture that will see assembling of road construction and agricultural equipment in the country.
Bico, which is registered in Kenya, will work with Liebherr to set up an assembly plant in Nairobi starting at the end of the year.
Bico-Liebherr founder Andrew Malunga said the company is targeting to produce at least 30 units a month comprising earth movers, water drilling machines and farm machinery such as tractors, with an eye on county governments.
“As the counties grapple with the huge mandate of providing residents with good roads and agricultural machinery, there is the challenge of equipment and we expect that this venture will come in handy for the devolved units,” he said, adding that assembling equipment locally will help reduce prices.
“Marketing of the farm inputs locally will, for instance, save taxpayers from excessive taxation and the spare parts for these machines will also be readily available,” said Mr Malunga.
He said the firm had acquired five acres of land where the assembly plant will be situated, while a showroom will be built in Malindi.
“The infrastructure developments that have been initiated by the government will transform this country and proper equipment for construction are required. We believe that we have come in at the right time to provide these equipment,” said Mr Malunga.
While a loader imported from Germany costs over Sh20 million, those that will be assembled here will cost about Sh13 million, resulting in savings of Sh7 million, said Managing Director Shadrack Mwangolo.
According to Mr Malunga, the company will set up stations in each county and employ machinery operators to enable the devolved units to hire the equipment. This will create at least 5,000 jobs across the country.
“Liebherr products have been proved to be reliable and durable and will serve as a key driver to development in the counties,” he said, adding that there were plans of establishing branches in other countries in the region.