Kenya puts on hold ban on importation of used cars

Ban on importation of second-hand vehicles and particularly those with 1500cc engine capacity and older than three years, could take a little longer, after the Kenyan government bowed to sustained pressure from car dealers and importers.

This after Kenyan MPs suspended the implementation of a ban on importation of eight-year-old used cars in hat is seen as a major win for car dealers and despite the State saying it will not hold back on such plans.

The free-wheeling implementation of the draft copy of Motor Vehicle Policy (MVP) was meant to begin June 30. 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.

National Assembly’s Trade, Industry and Cooperative Committee, chaired by Kanini Kega, MP Kieni, and Tuesday declared the policy a “roadside pronouncement” that has no legal backing thus stand suspended.

Trade Cabinet Secretary Peter Munya, while appearing before the team, admitted that the proposal had no

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.

“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 two months ago.

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.”

With the process now on hold, albeit temporarily, the question is likely to convulse the weary thinking of second-hand car importers, who have consistently maintained that the move is not a well-thought plan, one that could be catastrophic for the majority of the industry’s dependents.

“We have not been engaged since the new minister replaced Adan Mohamed, but you see it’s not a good a good move. Jobs will be lost, owing a car will be very expensive for most of young peoples who rely on car imports and don’t forget most of these middle income earners pay a lot of taxes to KRA,” said Charles Munyori, the secretary-general of Kenya Auto Bazaar Association (KABA) said in a previous interview with this platform.

The enforcement of age vehicle limit to 5 years is further expected to reduce traffic jams on Kenyan roads.