EDITORIAL: Don’t rush second hand car imports directive

The plan by the State to lower the age limit for second hand car imports from eight to five years, on the face of it, looks well-intentioned.

For a country swamped by all manner of second-hand items, it makes economic sense, not only to rid the market of polluting old vehicles but also to rev up the national industrialisation drive.

To that end, we fully support the call by Trade, Industry and Cooperatives ministry to reduce the age limit of imported vehicles.

Only that such efforts should not be rushed. The idea that this country can switch to five-year import limit at one go, from July 1, isn’t tenable.

For one, this country relies heavily on imported vehicles. This has less to do with citizens’ preference for foreign items than it has nearly everything to do with their relatively affordable cost.

Kenya imports 7,600 vehicles per month on average compared to the 430 units that local assemblers are able to put together over the same period.

Secondly, new cars, just like the locally produced vehicles are priced way beyond the reach of many households. A one-litre petrol-powered Toyota Vitz manufactured in 2012 is, for instance, shipped into the country at Sh612,000 compared to Sh1 million had the age limit restricted the buyer to a 2015 model.

The process of cutting age limit must therefore address factor costs that have kept prices of locally assembled vehicles high.

Above all, Kenya is already in a common market with its five East African neighbours. That means enforcement of age limit can only succeed when undertaken across the region. Imposing a five-year age limit in Kenya when neighours are free to import eight and 10-year old vehicles will only boost cross-border smuggling which is already a customs issue.

In short, the intention to shift to the five-year limit is good but the “big bang” approach is untenable. Let the ministry try a phased-out implementation schedule as it monitors impact.

It may also need to try the rule on a category of imports, say buses, trucks and other commercial vehicles before escalating it to private cars.