Importers protest as fees for used cars inspection raised

Importers of second-hand vehicles have protested over the recent increase in pre-shipment inspection fees.

Quality Inspection Service Japan (QISJ) this month raised the fees from JPY16,000 (Sh12,000) to JPY18,300 (Sh14,000) per unit.

The importers said the increase was unjustified and asked the Kenya Bureau of Standards (Kebs) to step in and order a review of the rates.

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.

“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 on Wednesday at a Press conference in Mombasa.

He also claimed that the company did not have capacity to inspect the more than 300 units delivered at its inspection points daily since it had only two inspection centres.

He urged Kebs to contract more companies to carry out the exercise.   

“Each day there are about 300 units that should be inspected yet they are only doing about 150. This has created a backlog which we fear will increase as the high season sets in and result to losses, which is unacceptable,” said Mr Otieno.

However, Mr John Abong, who is in charge of quality assurance at Kebs, dismissed the claims saying that QISJ had nine inspection points.

He said allegations that there were only two points were false since the company has three stations in Kanto and two in Chubu, Konki and Kyushu respectively.

“The new rates are within the limit which we agreed on with the company in the contract,” said Mr Abong.

Jevic was one of three companies which Kebs contracted in 2012 to inspect second-hand vehicles to ensure that those shipped into the country are not over eight years old and that they are roadworthy.

At least 7,000 vehicles are imported each month, amounting to 84,000 units per year.

Used car dealers have grown sales by more than 20 per cent in recent years on increased demand.

The dealers’ lobby, Kenya Auto Bazaar Association, attributed the sales rise to the ease of accessing loans and cheaper credit.