- Posted by: Administrator
- Category: Finance
The government has reduced the age limit of second-hand cars from eight to five.
This regulation targets vehicles above 1500CC and will be effected beginning July 2019.
Trade Cabinet Secretary Peter Munya said the reduction of the age cap will be gradual.
By 2022, only brand new vehicles will be allowed into the country.
This move is perceived as government’s strategy to ignite local manufacturing industry . The government has announced plans to reduce the age limit of second-hand cars imported into the country from eight to fives years. This new regulation is expected to take effect beginning July, 2019 in a gradual plan to rid the country of used vehicles.
According to Trade and Industry Cabinet Secretary Peter Munya, the regulations will affect vehicles above 1500CC/1.5 litre engine capacity. This means Kenyans intending to import such vehicles will be forced to part with more cash to match the value of the newer cars. “People who would want to purchase cars with bigger engine capacities will have to pay more because they will only be allowed to bring in the newer 5-year-old vehicles,” Munya said.
According to the CS, the age limit ceiling for second-hand vehicles will be on a gradual reduction series so that only brand new vehicles will be allowed in the country by 2022.
This new law is seen as part of the government’s strategy to ignite and sustain local manufacturing of vehicles.
“Those who will need the fuel guzzlers need to have the financial muscle to get newer cars. Otherwise they will have to settle for smaller cars as we explore options of having locally assembled vehicles,” Munya said.
In 2016 Parliament amended the Excise Duty Bill, 2015 which saw increased taxation of second-hand cars from overseas.