Second car traders have criticized government’s proposals to impose new age limits on second hand vehicles imported into the country. The new proposals include a ban on importation of vehicles that have been registered or been in use abroad for five years before being brought into Kenya. The current limit is eight years. Traders have warned that lowering this period to five years will lead to a sharp drop in revenue and affect jobs. Industrialization Cabinet Secretary Adan Mohamed says the government was finalising the Draft Policy on the importation of used cars which aims to reduce the age limit from 8 to 5 years.
The move, according to Mohamed, is aimed at reducing the snarl up on the Kenyan roads but also spur local motor vehicle assembling business and lead to more job creation. On Monday, the used car importers said that the decision to reduce the age limit will lead to a drop in government revenue and increase used car prices by up to 50 percent.
According to Car Importers Association of Kenya (CIAK) chairman on average over 24,123 used cars are imported into the country per month amounting to Sh13.5 billion in revenue for the government. They have pleaded with government to embrace public participation before lowering the age limit of cars imported into the country from the current eight years to five.
SOURCE: THE STANDARD