Used-car Dealers Write To Uhuru About Proposed Vehicle Import Rule of 5 years by July 2019

Used-car Dealers Write To Uhuru.

Used-car Dealers Say Proposed Import Rules Unfair

Used car dealers have urged President Uhuru Kenyatta to block the implementation of proposed policy limiting the age of imported cars. Through the Kenya Auto Bazaar Association (Kaba), the dealers said the Draft National Automobile Policy which proposes limiting age of imported cars to 3 years by 2021 is discriminatory and will hurt their businesses.

“We strongly feel and believe that this proposed policy is discriminating and solely designed, motivated and purposed to first frustrate and then destroy completely used-car import business in Kenya,” said Kaba Secretary Charles Munyori and Chairperson Major (Rtd) John Kipchumba in a statement published in local dailies.The association wants President Kenyatta to instruct Trade, Industry and Cooperatives Cabinet Secretary Peter Munya to urgently convene a stakeholders meeting — involving automotive and manufacturing sectors — to formulate an inclusive policy that caters for all their interests. Kaba claimed that it contributes Sh49 billion in taxes to the government annually and is crucial player in fulfilment of Mr Kenyatta’s Big Four manufacturing agenda.




“We are very disheartened by the fact that the Ministry of Trade, Industry and Cooperatives deliberately chose to put us aside during the deliberations on this vital policy and only engaged motor vehicles franchise holders, assemblers and their associates,” said Kaba. While acknowledge that Kenya has no firm that completely manufactures motor vehicles in the country, Kaba blames motor vehicle assemblers and associates in the import business of failing to pay tax because they engage in ‘local motor vehicle manufacturing’. Used car dealers said they want a level playing field for all stakeholders, a business dictated by free markets supply and demand factors. They accused motor vehicle assemblers and new car dealers of underhanded tactics, saying they don’t pay tax because they engage in ‘local motor vehicle manufacturing.’