In a push to grow local vehicles assembly business, the government plans to phase out importation of second hand cars in the next five years.
Treasury CS Ukur Yatani, on Monday, January 25, said that the government will phase out secondhand cars by 2026.
“The government, through the Ministry of Industrialisation, drafted the National Automotive Policy to streamline the motor assembly industry with the ultimate goal of phasing out the importation of second-hand vehicles by 2026,”
“The policy also aims at spurring growth in local car assembly as it prescribes clear measures to promote utilisation of locally manufactured products, local content, sub-contracting, innovation, research and development, capacity and skills development and training, and technology transfer.” the Treasury in the draft Budget paper.
In the 2021 draft budget, the Treasury said the automotive policy would enhance value addition and create jobs for young people.
As part of the government’s economic stimulus plan to fight off the effects of Covid-19, Trade CS Betty Maina said Sh600 million has been set aside to purchase locally assembled or manufactured vehicles.
In January 2021, Local carmaker Mobius Motors opened a new Sh330 million manufacturing plant in Nairobi.
Mobius Chief Operating Officer Nicolas Guibert said during the factory’s launch that at least eight units will be produced from the Mombasa Road plant daily.
He said the company will double its workforce once the factory is fully operational.
“I would like to thank Treasury and the Ministry of Industrialisation for the support they have given us as we built the design of the new car, Mobius II, and worked hard to establish this factory,” said Mr Guibert.