Kenyan businessmen in the car industry stand to make Ksh1.2 billion profits after the government offered relief over import restrictions.
A report by Business Daily on Wednesday, January 6, indicated that over 12,000 cars have already arrived at the Port of Mombasa with each expected to fetch at least 100,000 profit margin.
In December 2020, the state, through the Kenya Bureau of Standards (Kebs), gave a reprieve for car importers on the eight-year car age limit restriction.
Kebs' deadline of importing used cars older than eight years was postponed, a welcome move for car importers who had already ordered the cars.
At the time, the regulator had set the deadline on December 31 but the dealers decried delay in importation due to Covid-19 pandemic effects on the industry which compelled Kebs to postpone the deadline.
A statement from Kenya Ports Authority (KPA) indicated that the cars had begun arriving on January 3 and the exercise would continue until January 13.
“It is like over Sh100,000 profit for each vehicle imported. Importers bought them at throwaway prices since Japan knew it had no market for them,” stated Kenya Auto Bazaar Association (KABA).
Kebs allowed importers to lodge import documents for vehicles delayed due to shortage of vessels as evidence for consideration for the waiver from the 8-year old rule on second-hand vehicles.
"KEBS has received petitions that Covid-19 pandemic might have affected some importers due to disruption of shipping schedules.
"We, therefore, wish to inform such importers to lodge all the necessary supporting documents to prove the impact of Covid-19 on their shipment before a waiver can be considered," the organisation noted.
The regulator had advised that such documentation should not be received after December 28, 2020.
Kebs had earlier issued a notice to car importers and dealers announcing the eight-year age limit for vehicles.
