Car importers renew opposition to 5-year age limit

Imported cars at a yard in Mombasa. Photo | Kevin Odit | NMG

What you need to know:

  • They say planned policy will lead to loss of jobs and lower revenues for government agencies.
  • They want the State to instead consider improving road infrastructure in the country to address rising number of vehicles in urban areas.
  • The planned policy is aimed at reducing traffic jams and spurring local motor vehicle assembly.

Second-hand car importers want the government to consult them before implementing rules reducing the age limit of vehicles allowed into the country from eight years to five.

They argue that the planned policy will lead to loss of hundreds of jobs and lower revenues for State bodies that levy fees on importers.

“The Kenya Revenue Authority (KRA) charges an average import duty of Sh500,000 for every car imported into the country. NTSA charges an average of Sh18,750 as registration fees for every imported vehicle. Also the Kenya Maritime Authority (KMA) generates merchant ship services levy at an average of Sh1,874 per car...In total, the Kenyan government generates a total of Sh13.5 billon as revenue for imported cars...If the new policy takes effect, some of these gains will be eroded since the number of cars will drastically reduce in Kenya,” Car Importers Association of Kenya (CIAK) chairman Peter Otieno said Tuesday.

Better roads

He said the government should instead consider improving road infrastructure in the country to address rising number of vehicles in urban areas.

“Kenya is still maintaining most of the colonial roads which routinely have been tarmacked. However there has been very little initiative to expand the same. Since the population has tripled, we should have also tripled the roads. This will make snarl-ups manageable,” Mr Otieno said.

Last month, Industrialization Cabinet Secretary Adan Mohamed said government was finalising the draft policy on importation of used cars that aims to slash the age limit to five years.

The move, according to the CS, is aimed at reducing traffic snarl ups as well as spurring local motor vehicle assembly business and thus lead to job creation.

There has also been mounting concern that unscrupulous individuals are taking advantage of the region's differing car import regulations to bring in used cars without adhering to the eight-year age rule.

Tanzania has a maximum car age limit of 10 years while Uganda has none.

Rwanda, Burundi and South Sudan also do not have age limits.

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