The Kenyan government is planning to phase out the importation of used cars by 2026 a move aimed at growing the local car assembly industry.
This is one of the many measures planned by the Industrialisation ministry to shape up the motor assembly sector.
According to the Treasury second-hand car models make up more than 85 percent of the imported fully built units (FBUs) in Kenya.
“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,” said the Treasury in the draft Budget paper released on Monday, January 25.
“The policy also aims at spurring growth in local car assembly as it prescribes clear measures to promote utilization of locally manufactured products, local content, sub-contracting, innovation, research and development, capacity and skills development and training, and technology transfer.”
The draft 2021 Budget statement shows the state’s development plans for the financial year that begins on July 1, 2021.
The Treasury noted that the automotive policy would create jobs for the youth, improve local value addition as well as raise the manufacturing sector’s contribution to the economy.
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Last week, Trade CS Betty Maina revealed Sh600 million has been set aside to purchase locally assembled cars as part of the government’s economic stimulus plan to fight off the effects of the Covid-19 pandemic.
The draft 2021 Budget also notes that the manufacturing pillar within President Uhuru’s Big Four Agenda would continue to offer the “necessary training ground” for the youth.
“In order to hasten the process of shifting the youth from wage earners to owners of capital, the government, through this pillar, is developing productive capabilities to necessitate their movement from rudimentary to complex operations,” said the Treasury.