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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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Participants in the Kenyan automotive industry hold a meeting with the Kenya Bureau of Standards (Kebs) in order to reach a consensus before the proposal to reduce the maximum age limit for imported second-hand cars in Kenya (8 years) to 5 years and also review the emission levels.
The objective of the workshop is to build consensus ahead of the proposal to lower the maximum age limit for imported used vehicles in Kenya from eight years and also review the emission levels.
It was not immediately clear when the government plans to lower the age limit but sources said indications are that the policy could come into force next year.
Reducing the age limit to five years means only more expensive vehicles will be imported, and prices will rise even higher with the cumulative application of a raft of taxes based on customs valuation.
Dealers said the final price of a five-year-old Toyota Vitz, for instance, could rise to Sh1.2 million compared to Sh700,000 for an eight-year-old model.
The Vitz is one of the most affordable cars and the proposed policy indicates that all imported cars will cost more than Sh1 million. Vehicles attract import duty of 25 per cent, excise duty of 30 per cent and valued-added tax of 16 per cent， payable cumulatively and in that order.
This has seen most second-hand vehicle dealers go for eight-year-old models to limit the tax payable and keep it from inflating the retail price. Used cars are popular among the retail price. Used cars are popular among the retail price. Businesses.
Most of the new vehicles, priced in millions of shillings, are bought by the government, international agencies, private companies and wealthy individuals.
The government sees the banning of imports of older vehicles as a means of reducing emissions since newer models have better engine and exhaust technology.
