Car prices to double in Kenya as the Government plans to reduce age limit of imported cars to 5 years.

Monday, February 11, 2019 - The Government’s proposed policy to reduce the age limit of imported vehicles to five years may see prices of cars in Kenya double.

Car importers under the Kenya Auto Bazaar Association (KABA) have called on the Government to bin the proposal terming it counter-productive.

According to the proposal, the Government aims to reduce the age of all used imported cars from the current 8 years to 5 years by 2019, then to 3 years by 2021

However, according to Mr. John Kipchumba, the KABA chairman, the move will double prices of vehicles thus locking out many Kenyans and leading to multiple traders closing shop.

“This will automatically mean that a car that would cost you Sh.500,000 will now cost you at least Sh.1.2 million,” said John Kipchumba.

“The industry is willing to stop the importation of the commercial vehicles but they have to prove to us that they have capacity to make the cars here,” said Kipchumba.

His sentiments were echoed by Peter Otieno, the Car Importers Association of Kenya (CIAK) chairman

“For example, a Toyota Fielder that goes for Sh1.2 million will be retailing at about Sh1.7 million while a Vitz that costs Sh700,000 will cost Sh1.2 million. This will weigh heavily on Kenyans and affect our economy. Very few people will buy cars,” said Mr Otieno.

He added:

“I don’t know where they will get the trillions they put in their budgets if they interfere because this is one of the fastest growing industries in this country and the Government gets a lot of money from it.”

“As soon as they implement that policy they will not collect the projected tax. A good example is Uganda which wanted to reduce the imported vehicle age limit to 10 years but has now agreed with stakeholders to set it at 15,” he said.

The Kenyan DAILY POST

  1. fellow Kenyans: please don't buy anything car assembled in Kenya: They don't meet any road international safety measures. proof to this. none of those killer cars have any accident safety rating conducted by these cheap local assembles. Even the president himself and those advocating for these killer cars can't buy those cars.

    It's better to by a second hand car from Japan and Europe and not these killer cars assembled in Kenya by the cartels as the main investors and majority share holder of killer business.

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