Stakeholders in the automotive industry in the North Coast Region have strongly supported the proposed National Automotive Bill but called for tax incentives to promote local automotive business.
Speaking during a public participation forum at Takaye Social Hall in Malindi Sub County, the stakeholders from Lamu, Kilifi and Tana River Counties said the proposed law had the potential of creating thousands of jobs.
They said the new legislation could boost Kenya’s economy by promoting local vehicle assembling and spare parts manufacturing, hence reducing reliance on imported second-hand vehicles and spare parts.
The stakeholders, who included business leaders, technicians, traders and members of the public, however, said that a punitive tax regime could erase any gains from the new legislation, noting that imported automotive products, including vehicles, were far cheaper than locally made ones due to high taxation.
The forum was part of the nationwide public participation exercise on the Bill being spearheaded by the State Department Industrialisation to collect views before the Bill returns to Parliament for debate and possible enactment.
Kenya National Chamber of Commerce and Industry (KNCCI) Kilifi County Chairperson Majid Swaleh urged the government to invest in training, introduce automotive engineering courses, and ensure leaders purchase locally made vehicles once production begins.
“If this law comes into force, the government should promote local vehicle assemblers by ensuring that high ranking government officials such as Cabinet Secretaries use locally assembled vehicles as opposed to the current practice of importing high-end vehicles for them.
Former Malindi MP Abubakar Mohamed Badawy welcomed the Bill but warned against banning used cars too quickly, saying high taxes on new vehicles could hurt ordinary Kenyans.
He also criticised the inclusivity of the forum, citing limited awareness and long travel distances for participants.
Mr Aliasgar Kasamjee, a KNCCI official, raised concerns over clauses such as the one proposing a 60 percent local content requirement.
Other stakeholders, while welcoming the establishment of an automotive institute, asked the government to utilise already established technical institutions such as vocational training centres and technical and vocational colleges to impart skills to the youth across the country.
The participants urged Parliament to consider their recommendations carefully, stressing that the Bill’s success will depend on affordability, inclusivity and genuine empowerment of local industries.
The session was led by experts from the state department led by Mr Elijah Okumu, the Deputy Director in charge of Engineering and Construction at the State Department of Industrialisation.
By Emmanuel Masha and Martin Mwangolo
