This archive report was first published on 23 October 2019.
Kenya's used car importers are up in arms over President Uhuru Kenyatta's directive to ban the importation of second-hand vehicles, a move aimed at safeguarding local car assemblers.
According to the President, the decision is part of his administration's efforts to ensure that Kenyan taxes are used to buy goods made in Kenya.
'We want Kenyan taxes to be used to buy goods made in Kenya. Even if they want to go to court to oppose the government's stand, we are clear on our agenda to ensure all those who invest in the country get value for their money,' President Uhuru said.
However, the Car Importers Association of Kenya (Ciak) has vehemently opposed the move, arguing that the car-importing business is an economic backbone for over 2.5 million people.
Ciak chairman Peter Otieno accused assemblers of banking on tax-free incentives to make a profit, and challenged them to reveal where they source local content.
'Who are supplying them with nuts, brake pads, springs, locks, mats and such like things? Everything used in those motor vehicles must support local industries by using local content,' Otieno stated.
According to CIAK Data, Kenya imports about 7,600 second-hand vehicles per month, while locally assembled vehicles record 430. Ciak imports 120,000 to 130,000 vehicles per year.
Toyota Kenya chairman Dennis Awori, however, defended the local assembly line, citing the popularity of the Hilux pickup as a reason for its establishment.
'The pickup is affordable, especially for start-ups, and can be used for both personal commuting and commercial purposes,' Awori said.
