Vehicle assemblers want the government to implement the National Automotive Policy to give the local auto industry a kick start. DT Dobie Sales General Manager, Usha Nagpal says the policy, which among others advocates for a gradual phase-out of second hand vehicles, will compliment various measures that the government has put in place to boost the local auto industry.
As part of boosting the manufacturing agenda, the government has identified the automotive industry to help create more jobs, and industrialize the country. Kenya with three auto assembling plants currently produces about 6,000 vehicles, which is 35% of the local capacity.
So far, the government has removed import duty for vehicle parts destined for the local market while banning the importation of some spare parts that can be sourced locally.
The Ministry of Trade and Industry has further drafted the National Automotive Policy that among others seek to give local assemblers preferential treatment and phase out the importation of second hand vehicles.
Usha Nagpal, DT Dobie General Manager for Sales, says delays in implementing the policy is hurting the assembling business. The ministry of trade estimates that the industry has the capacity to create 130 thousand jobs from the current 4000, if more incentives are churned out.
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