Prices of Used Cars to Rise With New KEBS Rule

  • Prices of second-hand vehicles in the country are set for a sharp increase with the Kenya Bureau of Standards (KEBS) plotting implementation of a proposed rule that would set the maximum age-limit for imported units at five years.

    Currently, the maximum age-limit for imported used vehicles in Kenya is eight years.

    A meeting was held on Monday involving KEBS and various stakeholders to discuss the policy which has been in the pipeline for a few years.

    “The objective of the workshop is to build consensus ahead of the proposal to lower the maximum age limit for imported used vehicles in Kenya from eight years and also review the emission levels,” a letter sent by KEBS to stakeholders on December 3rd, 2018 read in part.

    Reports indicate that the policy could come into force as early as next year, setting the stage for drastic increases in prices of used cars.

    The policy will result in the importation of more expensive second-hand vehicles and, subsequently, higher taxes based on customs valuation.

    For example, a second-hand Toyota Vitz currently available at Sh700,000 is expected to sell from around Sh1.2 million for a five-year old model once the rule comes into effect.

    The government maintains that the move is also meant to help in cutting emissions as newer models have advanced engine and exhaust technology.

    Majority of car buyers in Kenya purchase second-hand models owing to their affordability.

    New vehicles are primarily the reserve of government, high net worth individuals, international agencies and private firms.