- Posted by: Administrator
- Category: Finance
Kenya’s motor vehicle industry is expected to grow by 15pc this year following a difficult period that was largely characterised by low sales in 2017.
According to Kenya Motor Industry Association (KMI), dealers could witness an upsurge in the number of new vehicles sold locally this year, owing to enhanced government interventions and condensed political activities.
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Key among the factors hoped to improve the sector include recent remarks by Industrialization Cabinet Secretary Adan Mohammed, who said that the government will further slash the age limit for imported cars from the current eight years to five years, in a host of incentives intended to promote local vehicle assembly.
Also on the cards are tax reforms proposed by National Treasury to slash by half corporate tax for local car assemblers.
Last Year, the industry endured the brunt of negative consumer sentiment especially in the commercial segment, with most firms apprehensive to spend on buying new vehicles as well as entering leasing contracts.
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The banking law that capped interest rates is further blamed to have played a role that hampered the industry’s growth.
Several vehicle dealers like Swedish brand Volvo, French Car maker Peugeot among other car brands have started local assembling with a target to reap from the growing industry.
SOURCE: People Daily