A used vehicles sales yard in Nairobi. Japanese firm Quality Inspection Services has raised its charges. PHOTO | FILE
What you need to know:
Kebs has backed the increase in inspection fees for second hand imported vehicles amid protests from car dealers.
QISJ and Auto Terminal Japan are offering the checks after Kebs, which licenses pre-shipment inspection companies.
Last week, the importers association raised concerns over the additional charges incurred in inspection as well as lodged complaints over the backlog of vehicles to be inspected, attributing it to lack of capacity by QISJ to inspect cars coming to Kenya.
The Kenya Bureau of Standards (Kebs) has backed the increase in inspection fees for second hand imported vehicles amid protests from car dealers.
Kebs managing director Charles Ongwae said the increase was prompted by the standards body’s demand for an additional $5 (Sh455) from the inspection firms to boost its income and cut reliance on the Treasury.
Mr Ongwae said Quality Inspection Services Japan (QISJ) had increased inspection fees from $145 (Sh13,195) per car to $150 (Sh13,650).
But the firm’s website indicated that the inspection fees has increased to Sh13,814 from Sh12,257—which is Sh164 more than the approved Kebs fees.
“The $150 is the official fees charged in Japan, the increment of five dollars is justified because as Kebs, we also need to generate our income from the exercise,” said Mr Ongwae.
The bureau receives $41 (Sh3,690) every car inspected, up from $34 (3,094).
The Japanese firm has also increased inspection fees for used cars imported from South Africa, the United Arab Emirates and the United Kingdom.
The QISJ website indicates that inspecting a car in South Africa will cost Sh21,307, up from Sh14,885 it has been charging from 2013 September.
In the UAE it has increased to Sh16,523 from Sh15,575 while in the UK its up by Sh1,227 to Sh23,447 per car.
QISJ and Auto Terminal Japan are offering the checks after Kebs, which licenses pre-shipment inspection companies, failed to extend the contract of Jevic following the expiry of its licence on January 15.
QISJ was given a three-year contract effective this month.
Last week, the importers association raised concerns over the additional charges incurred in inspection as well as lodged complaints over the backlog of vehicles to be inspected, attributing it to lack of capacity by QISJ to inspect cars coming to Kenya.
“We cannot understand the reason for increasing the charges. We think it is meant to fleece buyers because the fees will be passed on to the consumer,” Mr Peter Otieno, the chairman of Car Importers Association of Kenya, told journalists last week at a Press conference in Mombasa.
Mr Ongwae defended the firm saying it has numerous inspection centres that will play an important role in speeding up the inspections, hence creating no room for backlog.
“The firm has 29 centres in Japan, 18 in the United Kingdom, five in South Africa, and one in United Arab Emirates and all these centres have ensured that the inspection exercise is done very fast,” he said.
From March 1 to March 13, the firm has inspected a total of 2,868 vehicles from Japan, 127 from UK, four from South Africa and 15 from UAE according to statistics from Kebs.
At least 7,000 road worthy vehicles that are below eight years are imported each month, amounting to 84,000 units per year.
Mr Ongwae defended the move to source for a single inspection firm noting that the move was aimed at ensuring the quality of the second hand vehicles that is likely to be compromised in the event of competition from different firms.
“When we had three firms carrying out the same exercise, there were complaints coming in from consumers on the quality of motor vehicles being imported from Japan, UAE and UK,” he said.
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