This archive report was first published on 23 October 2019.
Kenya's vehicle importers are bracing for tough times ahead, following President Uhuru Kenyatta's announcement on October 18, 2019, to restrict vehicle imports.
Speaking at the commissioning of the Sh1 billion Toyota Hilux pickup truck assembly line at Associated Vehicle Assemblers (AVA) in Miritini, Mombasa, President Kenyatta vowed to safeguard local car assemblers against unfair competition and ensure a conducive environment for their businesses.
He directed the Industry, Trade and Cooperatives Cabinet Secretary, Peter Munya, to speed up the National Automotive Policy and promised to submit it to the Cabinet for approval within three weeks.
According to Mr. Munya, Kenya spends Sh22 billion a year on used-car imports, with the vehicles incurring high costs in maintenance and export jobs.
The proposed policy aims to cap the age of imports at five years by 2021, then three years, and finally zero by 2024.
Car importers, however, are opposed to the move, citing the economic mainstay that the car-importing business provides for over 2.5 million people.
"We want Kenyan taxes to be used to buy goods made in Kenya," President Kenyatta said.
But the Car Importers Association of Kenya (Ciak) has challenged the government's stance, accusing assemblers of banking on tax-free incentives to make a profit.
"The person doing assembling of motor vehicles is not a manufacturer; this is just an assembler, meaning that the parts are made somewhere else and even the painting has been done," said Ciak chairman Peter Otieno.
