Used car importers are agitating for creation of better laws and policies that will create a conducive environment for car trade in the country.
They also want the government to be considerate on taxes imposed on imported cars saying a review will allow more Kenyans purchase vehicles and in turn contribute towards the country’s economic growth.
Speaking during an awards ceremony organised by Dependable Brands in Nairobi, the car dealers asserted that the industry fetches the country more than Sh30billion in foreign exchange annually thereby playing a crucial role in the country’s economy stability.
Led by Khalif Kairo, the CEO of Kai and Karo who won the Young CEO of the Year Under 30 and Car Dealership of the Year awards, the importers averred that the sector should be supported by the government with tax reliefs and other incentives noting that it plays a huge role in supplementing the government’s agenda on job creation by creating more than one million jobs for Kenyans.
Kairo said that about 80 percent of cars used in Kenya are bought from the used car dealers adding that there’s need for the state to create friendly policies that will allow their business to thrive.
Poojan Maru of Chief Imports noted with concern that the car dealing business took a dip after enactment of the 2023-2024 Finance Act which increased taxation including the import duty that was raised from 25 percent to 35 percent, coupled with excise duty and VAT.
Maru also noted that the sector is still healing from losses made due to high forex rates that saw the cost of importing cars soar.
He however averred that the traders don’t have an issue with paying taxes insisting that the Kenya Revenue Authority needs to make the taxes more sensible and also involve them as stakeholders in the sector while making crucial policies including determination of the Current Recommended Selling Price (CRSP).
Eric Mwangi of Maridady Motors who won the CEO of the year said that creation of friendlier policies for the car importers will allow them venture into new technologies including the electric vehicles (EVs) thereby contributing towards environmental conservation in the country.
Mwangi also called on the government to put in place rigid measures that will enhance and maintain stability of the Kenyan shilling saying that this will see the vost of cars reduce.
Viva Motors Ceo Dennis Caleb who won the Luxury Car Dealership of the Year award, reiterated that the sector has a potential to create millions of jobs especially for unemployed youths if the Government creates favorable policies and review taxes imposed in the sector.
Similar sentiments were echoed by Purity Kimotho of Urban Drive who called on the State to allow the traders import newer cars without increasing the duty. This, she said, will fetch the country increased foreign exchange as more Kenyans will be able to purchase vehicles.
Recent industry data indicates a significant increase in the prices of second-hand cars manufactured between 2016 and 2017. The rise is attributed to the growing costs associated with importing units from abroad, resulting in a double-digit reduction in motor vehicle imports for the second consecutive year.
