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[li]CITIZEN[/li][li] [/li][li]9 MAY 2018[/li][/ul]
The cost of importing second hand cars into the country could soon rise as the government mulls plans to lower the age limit for used cars.
This as the government throws its support towards local car assembly as more car makers set up base in the country.
Industrialization CS Adan Mohamed said the government will formulate a policy to lower the age limit from the current eight years to allow domestic assemblers to compete more effectively in an effort to support local industry.
“We need to change the motor vehicle entry program for second hand vehicles into our country to make sure that the age of vehicles coming here is much shorter than it currently is,” Mr Mohamed said.
“I know it’s a sensitive issue and that people need cars to get from one point to another,” he added during the opening of spare parts manufacturing plant by Autosprings East Africa.
Since 2016 Volkswagen and Peugeot have set up local assembly plants with Japanese car maker Toyota also locally assembling a number of its vehicle models.
Mr Mohamed said the ministry would engage motor vehicle stakeholders as they seek to impose age limits on second-hand vehicle imports.
The plan is to have vehicle manufactures increase the number of locally produced cars to justify the reduction in the import age limit rule.
“The challenge is on the current motor vehicle assemblers. As we see additional increase in production of new vehicles then we will reduce the age of second hand cars that are coming,” Mr Mohamed said.
Second hand cars are popular with Kenyan motorists, majority of who prefer used cars due to their affordability.
Wapunguze taxes on shoes pia coz naona raia wengi wakitumia route 11,
Anyway , watu hawahitaji private vehicles …let the govt build an efficient public transport system Nairobi uone car bazaars zikifungwa
Cars in Kenya are a status symbol and for flossing in social gatherings whether its a funeral, wedding, Christmas or any other occasion that brings people who know each other together ndio watu wabaki wakisema ‘uliona ile gari alikuwa amekuja nayo?’
The initiative is good the problem is that the government works backward. I am sure there are people owning shares in those companies and to make a good earning out of their shareholding there are enforcing laws in the name of protecting local industries.
They should in my opinion:
a) Have a robust efficient public transport system;
b) Repair all roads that link town centres with homesteads;
c) Reduce the cost of energy specifically electricity for all;
d) Make access to health and quality health services possible and affordable;
e) Make sure farmers can make a decent living from their farms;
f) Ensure 95% of public funds benefit the country not individuals and their wives;
g) Regulate the predatory nature of financial institutions;
h) Improve security;
I) Allow regulatory bodies to operate without any political motivation;
j) Restructure the County government to make them more effective and efficient;
k) Push the Churches i.e. Catholic, PCEA and Anglican to revert back to their roots - to teach about love, respect, humility etc;
l) The Govt to espouse the principles of Good Governance
Without the above what they are doing is just punishing Kenyans.
The 800K Suzuki Alto used for Uber Chap chap has a 25% sales tax on it. 25 freaking percent!!! :eek: Which means the true showroom cost of the darn thing is 640K and the dealer is making a profit. Which makes the 1.65M VW Vivo worth only 1.32M without tax.
Even blueband is only taxed at 16% VAT. GoK is full of double speak. They say they want to stimulate local vehicle “manufacturing” but still restrictively tax new cars. Germany where the car industry is their bread and butter, sales tax is 8%. Hapa ni simple economics. Let’s learn from what we did with computers. There was a huge used(ex-UK) computer biz in Kenya because of restrictive taxes on new computers. Once removed, even campus students nowadays can afford a brand new, entry level computer.
Zero rate new cars. We gain more from using newer cars than what we loose from Europe and Japanese dumped models in Africa.