This archive report was first published on 9 August 2019.
Published on August 9, 2019, Nairobi — Kenya's government is on the cusp of finalizing the National Automotive Policy, a 15-year plan aimed at positioning the country as a regional vehicle manufacturing hub.
The policy, which has been in the works for some time, seeks to create more jobs and stimulate economic growth by promoting the production of locally assembled vehicles.
According to Trade and Industrialization Cabinet Secretary Peter Munya, the policy will help Kenya move away from relying on secondhand imported cars, which he says is detrimental to the country's economic growth.
"Available statistics show that the automotive industry is a big driver of employment. This cannot happen for Kenya if we decide to become a dumping market from countries where cars have been used for more than 8 years," Munya said.
However, the proposed policy has been met with opposition from second-hand motor vehicle dealers, who claim it will hurt the economy.
Kenya Auto Bazaar Association (Kaba), a lobby for second-hand vehicle dealers, has alleged that global automakers are pushing for the total ban of second-hand cars into Kenya as they look for markets for their locally made units.
"It is important to know that not every stakeholder will be satisfied and what we need to do is create a balance that will majorly support growth in the industry," Munya added.
The Ministry of Trade estimates that new vehicles assembled in Kenya will contribute Sh50 billion in taxes per year in the next five years, from the current Sh8 billion.
Already, the government has banned the importation of 17 categories of used motor vehicle spare parts, including oil filters, air cleaners, brake pads, and others.
