This archive report was first published on 13 July 2021.
July 13, 2021, marked a significant day for used vehicle importers in Kenya as they took their grievances to the High Court. The Car Importers Association of Kenya (CIAK) filed a petition seeking to stop the requirement that their vehicles be assigned registration number plates at the point of clearance.
The association argues that this rule puts them at a disadvantage in the market, where buyers prefer the latest number plates. As a result, used vehicle importers are forced to offer discounts, which can amount to losing their entire margins of Sh50,000 to Sh200,000 per unit.
The CIAK claims that they are being discriminated against, as formal dealers and other importers of new cars are allowed to register their vehicles at the point-of-sale. Additionally, their rivals who import new cars are not required to pay customs and excise duty before selling their vehicles.
The association wants a declaration that the Kenya Revenue Authority (KRA) and National Transport and Safety Authority (NTSA) have violated the Constitution by imposing the registration and customs and excise duty rules on used-vehicle importers.
According to the petition, before 2009, used vehicle importers were allowed to clear their vehicles from the customs area without number plates as long as they bore Kenya Garage number plates. However, this arrangement was withdrawn against CIAK members but left intact for franchise dealers of imported new vehicles.
The association argues that the requirement for used imported vehicles to have number plates before they are sold is unreasonable and amounts to discrimination. They claim that this has resulted in huge economic losses for their members, who continue to lose income due to the unfair rule.
