A section of motor vehicle importers and industry players have rejected the proposed National Automotive Industry Development Bill, 2025, claiming it is oppressive and does not reflect the views of key stakeholders in the automotive sector.
During a public participation forum held at the Agricultural Training Centre (ATC) in Kisii, stakeholders in the automotive industry accused the government of sidelining importers, small-scale artisans, and garage operators while drafting the bill.
In a televised interview, Peter Otieno, the chairman of the Car Importers Association of Kenya (CIAK), criticized the bill, claiming it should be withdrawn and re-drafted to reflect the concerns of all stakeholders.
“The bill has been rejected, and it has to be taken back for redrafting to cover everybody and to be all-inclusive,” stated Otieno.
Under the proposed law, all vehicle assemblers and manufacturers must be registered and licensed by the National Automotive Council (NAC), which would also have the power to impose levies and penalties.
According to industry players, this body would add unnecessary bureaucracy and increase operational costs, pushing small dealers out of business.
Additionally, the bill proposes strict regulation of the importation and sale of used vehicles in Kenya, a move importers believe is meant to protect big local assemblers.
Despite the Bill’s stated goals of industrial growth and job creation, it has sparked fears of job losses among car importers, spare parts dealers, and garage operators who depend on the used-car market.
Earnest Mokaya, a representative from the Jua Kali sector, called for more transparent dissemination of the Bill before further discussion would be held.
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Kisii Industrial Artisans Association chairperson David Mbadi said the sector requires adequate time and broad consultations before any major reforms are undertaken.
“This is a process starting at point A to B and so on, until we meet such a development that the country requires,” remarked Mbadi. “But, at this point, common agreement is that the Bill cannot work.”
The Automotive Industry Development Bill intends to streamline regulation, promote manufacturing, and align Kenya’s automotive sector with regional and global standards.
As consultations continue, stakeholders called upon the government to extend the public participation period and make the Bill publicly accessible, while ensuring any reforms to the Bill balance regulation, affordability, and economic inclusion.
