Car Importers Association of Kenya (CIAK) faulted the new digital number plates rolled out by the National Transport and Safety Authority (NTSA) as the major cause of the losses they were incurring.
Speaking to the media on Thursday, February 16, CIAK stated that despite the advantages of the new digital number plates, registering new number plates caused many buyers to shift their tastes and preferences, shying away from the older plates.
According to CIAK chairman Peter Otieno, the vehicles that dealers had bought before the launch of the digital plates were being rejected.
Moreover, he added that it was very costly to register all the vehicles to obtain the new plates as they had already paid for the registration of the older ones.
“Dealers are making huge losses because nobody wants to buy a car that does not have the new number plates, yet many dealers had already bought the vehicles before the launch,”
“Additionally, we have to pay Ksh3,000 for registration of the new plates despite having paid Ksh10,000 for the older ones,” Otieno stated.
He added that the government had consulted with them before rolling out the new plates, but their suggestions were allegedly not considered.
According to the CIAK chair, the Association had proposed issuing a unique identification number for every vehicle during registration that would still allow the government to meet its goal and allow them to continue making sales.
“The suggestion we gave the government was to issue unique identifiers for both new and old vehicles because if they did that, buyers would not be able to know which cars were registered earlier or later.
Car dealer Ismael Agwada lamented that the government used the move to collect more taxes because it was not a solution to their financial challenges.
Agwada pleaded with the government to reduce the import duty on cars noting that it had increased significantly, forcing them to increase their selling prices to avoid losses.
“The good thing about the plates is their beauty. The features are also great because you can scan, and they have unique numbers, but it does not solve the difficult financial situation we are all experiencing.
“We want the government to reduce import duty. A vehicle like the Nissan Serena that we used to buy at Ksh1 million we are now buying at Ksh1.8 million because of the import duty. People are not buying vehicles as much anymore,” Agwada stated.
The government unveiled the new digital number plates in August 2022, stating that all motorists were required to replace their old number plates within 18 months.
Former Interior Cabinet Secretary Fred Matiang'i insisted that exercise was mandatory, urging all motorists to replace the plates within the stipulated timelines.
