Kenya to lower age limit on used-vehicle imports to promote local assembly

20th July 2018

By: John Muchira

Creamer Media Correspondent


Font size: - +

Kenya has decided to reduce the age limit on used vehicles allowed into the country to promote local assemblers, who are struggling to increase the sale of new vehicles in a market choking with imports.

Industrialisation Cabinet Secretary Adan Mohamed says Kenya is on the verge of reducing the age limit on imported used vehicles from eight years to five years. The move is awaiting finalisation of a policy document that will outline the implementation process.

Local Assemblers

While used-vehicle dealers have strongly opposed the move, government is determined to put the brakes on imports to boost local assemblers, who account for less than 10% of the vehicle market.

“Government is keen to support the local automotive sector through various initiatives and policies, including reducing the age limits on imported used cars,” Mohamed said during the fifteenth edition of the Total Motor Show, which was held recently in Nairobi, the capital city of Kenya.

He added that imported used vehicles, which have flooded the Kenyan market, had made it impossible for new investors in the automotive sector to thrive, resulting in new-vehicle sales accounting for only one-tenth of the average 90 000 units sold each year.

Imports of used vehicles into Kenya have been increasing at an average of 10% a year, with Japan the key source country, followed by the European Union and the US.

The influx of used vehicles is one of the reasons why US automaker General Motors and dealers like RMA have opted to exit the Kenyan market, while global assemblers that have opened shop in the country are finding it hard to increase sales.

Germany’s Volkswagen, which opened an assembly plant in Kenya in December 2016, managed to sell 104 only Polo Vivo vehicles in 2017. Other global companies that have set up assembly operations in Kenya are Peugeot, Tata, Daewoo and Volvo.

According to the Kenya Vehicle Manufacturers Association, new-vehicle sales dropped by 20%, from 13 535 units sold in 2016 to 10 722 units in 2017.

In a recent report, the United Nations Environmental Programme states that Kenya is one of the African countries that are choking from imported used vehicles, which are worsening air quality.

In the East African region, Kenya has an age limit of eight years and Tanzania ten years, while Burundi, Rwanda and South Sudan have no formal age limits for imported used cars. On the entire continent, only Egypt, South Africa, Sudan and Morocco have imposed a total ban on used-vehicle imports.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor


Latest News

Fortescue CEO Andrew Forrest
Billionaire Forrest backs carbon levy on Australia fossil fuels
Updated 1 hour 48 minutes ago By: Bloomberg



Our Easy Access Chute concept was developed to reduce the risks related to liner maintenance. Currently, replacing wear liners require that...

Sandvik Mining and Rock Solutions
Sandvik Mining and Rock Solutions

Our intelligent surface drill rigs bring the latest technology to surface mining applications. Designed to work in the toughest operating...


Latest Multimedia

sponsored by

Magazine round up | 23 February 2024
Magazine round up | 23 February 2024
23rd February 2024
Resources Watch
Resources Watch
21st February 2024
Photo of Martin Creamer
Major hydrogen economy developments in SA
21st February 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.178 0.215s - 88pq - 2rq
Subscribe Now