The local arm of Indian conglomerate Tata, Tata Africa, will set up a vehicle manufacturing plant in East Africa.

Tata Africa managing director, Mr Naresh Leekha said that plans to set up the plant are at an advanced stage after it received approval from its head office in Johannesburg, South Africa.

"We will set up a bus manufacturing plant by the next financial year to serve the Eastern and Central Africa markets including Kenya, Uganda, Tanzania, Rwanda, Sudan, Ethiopia, Burundi, Malawi, and Zambia," said Mr Leekha.

He said this when he received Roads minister Mr Kipkalya Kones, who was on a courtesy call at the company on Tuesday. He disclosed that this would be a substantial investment, evidence that Tata Africa was here for long term. "We believe that by establishing a bus manufacturing plant, we will assist in creating more jobs," said Mr Leekha.

The plant to be sited in Kenya, will assemble the chassis and build the body locally. Already, the company assembles its light commercial vehicles and pick-ups in Mombasa in collaboration with Marshall East Africa at Associated Vehicle Assemblers (AVA).

As the initial strategy to the implementation of the plan, Tata Africa is starting a regional technical training institute in Nairobi to offer a six month course in automobile engineering.

The training will equip trainees with maintenance and repairs skills.