Kenya: Vehicles with 1500cc engines to be phased out in two years

By Steve Umidha

The ban on importation of second-hand vehicles those with 1500cc engine capacity and older than three years, could come a lot sooner, as the government embarks on a free-wheeling implementation of a draft copy of Motor Vehicle Policy (MVP) beginning June 30.

Speaking yesterday the cabinet Secretary in the Ministry of Industry, Trade and Cooperatives Peter Munya, said the process will be done systematically and that there was no turning back on that move.

“The first year from June 30, no vehicles above 1500cc will be imported into this market more than five years old, the following year the same engine capacity will be slashed to three years and the year after we will lower it to one year and later to zero,” said Munya in an interview with a local Television network.

Adding that, “By 2021, we will not have importation of any used vehicles above 1500cc. If you need such a vehicle, you will buy a new one.”

The motor vehicle policy was being prepared by Kenya vehicle manufacturers and auto vehicle players and companies, but continue to face hostility from car importers who insist they were not consulted when such plans were being mooted.

But the CS disagreed saying appropriate consultations had be conducted. “It (MVP policy) should be ready by end of the month since it has gone through the stakeholders’ engagement.”

The new piece of legislation is meant to shield local vehicle manufacturers from what new vehicle dealers believe is unfair market competition brought by importers of second-hand vehicles. It seeks to lower the age limit of car imports coming into the country from 8 to 5 years while at the same time guaranteeing tariff-free to some vehicle parts being produced in the country.

The move will now make it difficult for buyers of such vehicles, popular on Kenyan roads pay more for such purchases owing to high duty fees and associated costs of buying cars manufactured in recent years.

The government, further targets to reduce the level of motor parts importation in order to make it possible for local companies to buy from local manufacturers of vehicle parts as well as invent reduced tariffs for local car assemblers, lower high costs of additional taxes, charges, levies as well as logistical charges to grow the industry and make it competitive.