Car Buyers Warned of Trick That'll Cost Them Millions

g
Motorists drive along Mombasa Road
Kenyans.co.ke

Car buyers were warned of a new import trick that will cost them millions of shillings, as Kenya works towards facing out second-hand car imports by 2026. 

The Kenya office of Japan External Trade Organisation (JETRO) disclosed that local car importers were falling prey to promises of being given high discount prices only to realise that they were being scammed. 

JETRO, the Japanese trade agency said that the fraud cases were escalating and they had been notified of several cases in the past few months. 

Imported cars at the port of Mombasa await clearance.
Imported cars at the port of Mombasa await clearance.
File

“Almost every week we receive nearly three calls from Kenyan importers claiming that they were scammed by alleged Japan-based dealers.

“Some importers are lured by low prices and send money overseas without confirming the sellers’ trustworthiness and reliability. The funds are irreversible once the fraudsters gain access to them," Sotaro Nishikawa, JETRO's Executive Director for Nairobi office said. 

The agency urged motorists and car importers to cross-check dealers with its office and request assistance before they fall victim to the tricks targeting innocent buyers. 

JETRO maintains a directory of all second-hand car dealers in the Asian country. The buyers can also use the digital platform dubbed Jumvea to import cars and deal with the traders. 

Car imports contribute Ksh60 billion each year to the economy. According to the United Nations Environment Programme (UNEP) report titled Used Vehicles and the Environment 2020,  more than 95% of vehicles currently being added to Kenya’s rapidly growing light-duty vehicle fleet are imported used vehicles, mainly from Japan. 

Kenya wants locally assembled cars to dominate its market and extended the deadline for used car imports from two years to five years.

Treasury CS Ukur Yatani, on Monday, January 25, announced that the government will phase out secondhand cars by 2026. The earlier plan would have seen used car imports fade by 2023. 

On Thursday, December 10, President Uhuru Kenyatta commissioned the local assembly of Proton Saga saloon cars at the Associated Vehicle Assemblers (AVA) in Miritini, Mombasa County. One month later, local carmaker Mobius Motors also opened a new Ksh330 million manufacturing plant in Nairobi.

The Kenya Revenue Authority (KRA), on March 17, launched a nationwide crackdown on dealers and owners of fraudulently registered cars. The taxman warned that many car buyers purchase fraudulently registered vehicles and fall victim to shrewd traders. 

"KRA had enhanced investigations to identify the perpetrators of these fraudulent schemes. Those found culpable will be prosecuted and their vehicles and goods detained as stipulated by the law," a notice by the agency said. 

President Uhuru Kenyatta commissions local assembly of Proton Saga saloon cars on Thursday, December 10
President Uhuru Kenyatta commissions local assembly of Proton Saga saloon cars on Thursday, December 10
PSCU
  • . .