This archive report was first published on 18 December 2019.
As the year draws to a close, car importers in Kenya are in a rush to clear second-hand vehicles before the eight-year age limit rule expires. The Port of Mombasa has seen an increase in used car imports, with over 7,000 vehicles arriving at the port in the past two months.
According to industry insiders, the surge in imports is due to the pending National Automotive Policy, which aims to lower the car import age limit to five years from eight. The policy, which was delayed due to lack of public participation, is expected to be submitted for approval in Cabinet soon.
"We are negotiating on new policy but currently we are obeying the eight-year age limit until a new law comes into place. That's why there are more imports," said Car Importers Association of Kenya (CIAK) chairman Peter Otieno.
December 31 was the last day for 2012 manufactured vehicles to be cleared into the country under the age limit rule. However, delays by the Cabinet to pass the policy have stayed implementation, leaving importers pessimistic about their future prospects.
"CS Munya during the commissioning of the Toyota Hilux Pickup truck assembly line in Miritini end of October promised President Uhuru Kenyatta to present Policy in Cabinet within 3 weeks for approval. During the function, the President also affirmed his commitment to car assemblers an indication a law might come to force anytime which will leave us at a loss if we do any importation after December 31," said John Karanja, a car dealer.
The National Automotive Policy seeks to cap the age of second-hand car imports at 5 years by 2020 and restrict imports of cars to vehicles that are 3 years old or newer by 2021. The policy aims to boost the domestic automotive sector by reducing the dominance of used cars in the market.
