Kenya is planning to ban the importation of second hand cars that a more than three years by 2021 in a bid to promote the domestic auto industry.
This is contained in a draft policy which also states that vehicles with an engine capacity of 1500 cubic centimetres and below will be exempted from the new three-year age limit.
The policy also revealed that companies that assemble cars locally will now receive financial incentives.
That will include zero import and excise duties, as well as a 50 percent discount to the corporate tax rate.
Currently, Kenya‘s regulations allow the importation of cars up to eight years.
Importation of second hand vehicles in the east African country stands at about 85 percent.
Official figures revealed that importation of used vehicles in 2017 was worth some $593 million.
The new move Africafeeds.com understands is to help drastically reduce the rate of the importation of such used cars.
The move is also coming barely two years after French carmaker Peugeot resumed operating its assembly plant in Kenya after being shut in 2002.
It will be recalled that German Car maker Volkswagen also resumed operations in the East African country in 2016 in a similar fashion.
Players in the Auto-mobile industry in Kenya have welcomed the move describing it as a good initiative that will create more jobs locally.
Source: Africafeeds.com
