President William Ruto on Wednesday, April 24, assured Kenyans that they will be able to purchase newly imported used cars in Naivasha using the Kenyan Shilling, instead of the Dollar.
The Head of State gave the assurance while launching Jumbo Africa Auto Auction SEZ Limited, a company that will oversee the vehicle auctions.
He revealed that he had followed through on a promise he made while issuing operation licenses to five companies that promised to set up shop at the Naivasha Special Economic Zone, which included Jumbo Limited.
"Towards the end of last year, I was here and I promised to return on April 24 which is today. That day, I issued certificates to five companies that had agreed to set up in this Naivasha Special Economic Zone," remarked the Head of State.
"I am happy that I am here to open Jumbo Africa Auto Auction SEZ Limited where they will sell cars from Japan."
The President further explained that the auction will give car buyers a reprieve from relying on foreign currencies.
"Those of you who have been ordering cars using dollars and Yen and other foreign cars, there is no need for that because the cars will be available here and will be sold in Kenyan currency," he added.
"You will sell your cow, come buy a car here using Kenyans shilling. I thank the company for fulfilling its promise to set up this plant."
Importation Process
Motorists had earlier complained about the stringent procedures of importing a car including complying with requirements specified by the Kenya Bureau of Standards and a slew of taxes.
For instance, the Kenya Revenue Authority (KRA) stipulates that an imported car must be less than 8 years old from the year it was first registered. The vehicle should also be a right-hand drive.
Buyers must also pay 25 per cent import duty and varied excise duty depending an a vehicle's internal combustion. The charges range between 20 per cent 35 per cent.
Value Added Tax is estimated at 16 per cent, the import declaration fee is at 2.5 per cent while the Railway Development Levy is pegged at 2 per cent.
Importers must also present a commercial invoice, a logbook from the country of importation that has been cancelled from the country of origin, a bill of lading, a certificate of roadworthiness and a copy of their pin certificate.
The wait time is also longer.
