Kenya’s used car dealers have sounded the alarm over the proposed limiting age of imported cars .
Days after the government declared that the age limit for imported second-hand cars is set to drop from eight to five years starting July,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 three 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 a crucial player in fulfillment 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 vehicle franchise holders, assemblers and their associates,” said Kaba.
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.’