County Government of Laikipia

Three years ago, a Laikipia motor vehicle manufacturer Sagak Tech Automakers, made a bold move to venture into the manufacture of four-wheeler tuk tuks as the ultimate transport solution for the Kshs 2.7 trillion Central Kenya Regional Economic Bloc (CEREB). After months of struggle through the maze of government red tape, it's initial units are now in the final stages of getting registration. This sets the stage for the firm to venture into mass production. Writer Nahashon Maina talked to the company's Chief Operating Officer(COO) Mr. Wollace Kariuki.

  

Who is Sagak Tech Automakers? How many employees?

  

Sagak Tech Automakers is a Private Limited Company based in Nyahururu, incorporated in 2019 with the aim of locally manufacturing and assembling Tuk Tuks and motorcycles the are fuel-efficient and adapted to our terrain. The company has 20 employees and aims to grow them to 60 employees in the medium term. The company employed many more indirectly as it has engaged sub-contractors for parts who also have employed other staff.

  

What inspired the idea of a four-wheeler Tuk-tuk?

  

The need for a fuel-efficient short-distance transport solution prompted the founder Samuel Njogu to begin research and development of a four-wheeler Tuk-Tuk as the ones imported from China and India are unstable and could not access some places.

  

Where's the space of Sagak Tech Automakers in Kenya's competitive motor industry?

  

In the last couple of years, the registration of new tuk tuks and motorbikes has continued to grow steadily and is leading comparing to other sectors such as private vehicles, trailers, buses, etc.

  

So far, how is the level of demand for the BJ50?

  

The demand for BJ50 has continued to grow with indicative orders of 50 units and five units already paid for deposits.

  

What's the role of Sagak within the context Kshs.2.7 trillion Central Region Economic Bloc (CEREB) market?

  

The CEREB market requires short-distance transport solutions for products in a cost-efficient manner. Products such as milk, horticulture, building materials, transport to work, and market will be easily sorted by the BJ50 because of its stability and hardiness. This will create job opportunities for youth not only as drivers but also as distributors, parts manufacturers, mechanics, and technicians.

  

Laikipia is determined to exploit mineral resources, especially iron ore deposits in pursuit of its industrialization agenda. How will this benefit your firm?

  

The steel industry is not developed in Kenya leading to reliance on imported steel. For the manufacture of our units we require specialized steel referred to as automotive steel which mostly is imported. Mineral resources in Laikipia if exploited will provide affordable steel locally which will improve the value of local content in our products thus benefitting more from tax incentives making the product more affordable not only in Kenya but also to other countries.

  

How is Sagak Tech benefitting from collaboration with surrounding universities like Laikipia University, DeKut and Laikipia North TTI as well as Nyahururu VTCs.

  

Universities like, Dedan Kimathi University of Technology, and technical institutes remain a resource to Sagak Tech through the provision of technical services such as Computer-Aided Designs, Business Development services, research on parts, and training of quality welders and engineers.

  

How is your presence in Nyahururu impacting on local economy?

  

The growth of Sagak Tech has impacted positively the economy with the creation of job opportunities and increased interest in the industrial area which saw the upgrade of roads in the region. Landowners who initially were not using their parcels of land are now fencing and putting them up for lease as garages and automobiles services. The expansion of our company necessitated the leasing of a plant that had been dormant for over eight years bringing life to it. Rehabilitation of a common manufacturing center and its equipped with a lathe machine, connecting it to three-phase electricity and construction of a spray booth will create more opportunities for the self-employed.

  

What can you say hinders the growth of motor vehicle manufacturing in Kenya?

  

One of the hindrances is the legal and policy framework which for a long time has supported importation and assembly at the expense of local part manufacturers. Lack of developed steel industry and technical know-how is another great challenge as our training has much focused on training supervisors without technical persons. Getting a certified welder or fabricator is hard to come by and the few who have trained through apprentice locally cannot satisfy the demand. Lack of finance for research and development is another hindrance as the sector requires a lot of research and development which many investors are not willing to spend on that.

  

Where do you see Sagak Tech in the next five... ten years from today?

  

Sagak Tech is among trailblazers in the auto-manufacturing sector and the future is bright. In the next ten years, we expect to have established a bigger plant supported by sub-contractors and releasing to the market over 5,000 units in a year.

  

Your parting shot?

  

As a country and region, we should not fear to actualize our dreams and we should strive to move forward. We should believe more in ourselves and our products. Other nations are more focused on the welfare of their citizens. It's me and you who will liberate Africa from poverty and unemployment by manufacturing and growing our enterprises.