President William Ruto recently inaugurated a new Japanese car auction firm at the Naivasha Special Economic Zone (SEZ). This move is expected to lower the costs of importing used vehicles from Asia, particularly Japan.
Wide Variety of Vehicles
The firm, known as ‘Jumbo Africa Auto Auction SEZ Limited’, specializes in pre-owned vehicles from Japan, which is currently the largest source of imported used vehicles in Kenya. Buyers in Kenya, East Africa, and the entire African continent will now have access to a wide range of vehicles, including cars, trucks, motorcycles, speciality vehicles, machinery, mechanical appliances, vehicle parts, work trucks, and handling equipment at reduced prices.
Benefits for Buyers
President Ruto mentioned that buyers will be able to use the Kenyan shilling as a trading currency and participate in auctions from the comfort of their homes. Competitive bidding will ensure lower prices, leading to increased savings compared to traditional car importation processes.
Stimulating the Auto Industry
The competitive pricing and high demand for vehicles are expected to boost the country’s auto parts industry and overall activity in the automotive sector. This will contribute to the expansion of the economy and the adoption of new technologies.
SEZ Programme
President Ruto highlighted the significance of the Special Economic Zone (SEZ) programme in attracting private investment and driving economic growth in Kenya. The programme aims to increase employment, grow exports, enhance supply chain spill-overs, and boost foreign exchange earnings.
Attractive Incentives
The SEZ programme offers attractive tax incentives, high-quality infrastructure, simplified business procedures, and regulations, as well as expanded market access for goods produced in the zones. These features have made Kenya a more appealing investment destination.
Naivasha SEZ
The Naivasha SEZ is strategically located near the Olkaria Geothermal electricity generation complex, which reduces the cost of doing business due to low-cost power tariffs. The zone covers 1,000 acres and will include an industrial park, logistics area, cluster areas for SMEs, affordable housing units, and amenities.
Infrastructure Development
The government has invested in infrastructure development within the zone, including internal access roads and an inland container depot with a capacity of 100,000 units. This depot is connected to both standard and meter gauge railway lines, facilitating transportation and trade.
