21-06-2019 by redazione
Kenya's Minister of Trade and Industry, Peter Munya, announced that all government employees will no longer be able to buy imported luxury cars, but will have to request vehicles assembled in Kenya, such as those produced by Isuzu East Africa.
The tightening of the Kenyan government's rules aims not only to reduce costs, but also to promote those car manufacturers that have decided to open factories in Kenya and employ local labour in the domestic four-wheeler market.
Speaking during the launch of the new assembly plant in Isuzu East Africa, Minister Munya welcomed the plant, which will offer jobs, order suppliers and create the added value of tax revenues. Actions to be supported with a Council of Ministers approval that prevents government officials from importing cars for personal use.
"From now on, the government will only procure locally assembled vehicles, so no department will be able to buy imported cars" is the promise reported by the Kenyans.co.ke website.
In addition, local assemblers have been offered tax relief by the government that includes 15% corporation tax to promote vehicle assembly in Kenya.
"Our intention is to create jobs by expanding the manufacturing sector - added Munya - and become competitive and ambitious enough to make world-class products here in Kenya and for export to the markets of the Continent".
Kenya has made several attempts in the past to build its own cars, the most famous of which is the Nyayo, assembled in the 1990s, and the most recent is the Mobius.
Most local assemblers in the past have faced competition from second-hand cars imported from the UK and Japan. Recently, the government, through the Kenya Bureau of Standards (KEBS), also banned the import of some used car parts. This is part of the government's strategy to phase out used vehicles in the country in an attempt to increase demand for locally assembled vehicles.
The French car manufacturer Peugeot has started assembling its vehicles in Kenya at the Kenya Vehicle Manufacturers (KVM) Thika site. Peugeot is in fact the latest multinational that will be manufacturing vehicles in the plant near Nairobi.
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