The proposed National Automotive Bill, 2025 has elicited mixed reactions from stakeholders in the Coast region, with manufacturers strongly backing the legislation while car importers and players in the mobility ecosystem raised concerns over inclusivity, consumer choice, and potential job losses.
The divergent views emerged during public participation forums convened by the State Department for Industry as part of nationwide consultations on the Bill. The Coast region forum, which brought together stakeholders from Mombasa, Kwale, and Taita Taveta counties, was held at Tononoka Social Hall in Mombasa.
Addressing participants at the forum, the Principal Secretary in the State Department for Industry, Dr Juma Mukhwana, said the proposed Bill seeks to establish a clear legal and institutional framework to support the growth of Kenya’s automotive industry. He noted that the legislation aims to promote vehicle and motorcycle assembly, encourage local content manufacturing, enhance innovation, and position Kenya as a regional automotive hub.
Dr Mukhwana explained that the Bill aligns with key national development blueprints, including Kenya Vision 2030, the National Industrialisation Policy Framework (2012–2030), and the Bottom-Up Economic Transformation Agenda (BETA). He said these frameworks identify manufacturing as a critical driver of economic growth, industrial competitiveness, and job creation.
“The National Automotive Bill is about creating an enabling environment for the automotive industry to grow sustainably. It is not about excluding any player but about strengthening local manufacturing capacity and attracting investment,” said the PS.
Manufacturers at the forum voiced strong support for the proposed law.
Anthony Musyoki, Chair of the Kenya Association of Manufacturers (KAM) Automotive Sector, said the Bill would address long-standing policy gaps that have constrained the growth of Kenya’s automotive industry for decades.
Musyoki traced the history of Kenya’s automotive assembly industry to the 1970s, when the government invited investors to establish vehicle assembly plants. This led to the establishment of Associated Vehicle Assemblers in Mombasa, Isuzu East Africa (then General Motors) in Nairobi, and Kenya Vehicle Assemblers in Thika.
“At its peak in the 1980s, Kenya was assembling close to 20,000 vehicles annually. However, poorly managed market liberalisation in the early 1990s led to a sharp decline in production, which negatively affected local parts manufacturers and resulted in significant job losses,” Musyoki said.
He noted that production volumes dropped to below 4,000 units per year, making it difficult for local component manufacturers to achieve economies of scale. As a result, many firms shut down, leading to erosion of industrial capacity and skills.
Musyoki said the formation of the East African Community (EAC) later provided an expanded regional market that renewed opportunities for local assembly and manufacturing. However, progress remained slow due to the absence of a comprehensive legal and policy framework to guide the sector.
He added that the proposed Bill seeks to address these challenges by establishing an Automotive Council that will guide policy direction, attract investors, coordinate stakeholders, and support long-term growth of the industry.
Drawing comparisons with other African countries, Musyoki said South Africa currently produces about 600,000 vehicles annually and exports nearly half of that output, while Morocco has achieved similar production levels through deliberate policy support and investment incentives. In contrast, Kenya assembled approximately 14,000 vehicles last year.
“This Bill is not about assembling vehicles only for the local market. It is about positioning Kenya as a regional and global export hub for vehicles, motorcycles, and components,” he said.
Musyoki dismissed claims that the Bill seeks to restrict the importation of used vehicles, clarifying that the proposed legislation does not address that segment of the market.
“There is nothing in this Bill that touches on used vehicle imports. Its focus is on organically growing the automotive assembly industry, including motorcycles, tuk-tuks, and emerging electric vehicles,” he emphasised.
However, car importers expressed strong reservations about the proposed law. Peter Otieno, Chairman of the Car Importers Association of Kenya, opposed the Bill, arguing that key stakeholders in the importation and mobility ecosystem were not adequately consulted during its formulation.
“We object to this Bill because it is not inclusive. The government should not move around the country merely to demonstrate public participation when key stakeholders were not involved from the beginning,” Otieno said.
He raised concerns that the legislation could negatively affect affordable mobility, particularly for low- and middle-income Kenyans. Otieno noted that commonly used vehicles such as Proboxes, matatus, small saloon cars, and ride-hailing vehicles currently form the backbone of both public and private transport due to their affordability and availability.
Otieno warned that prioritising local assembly without sufficient consumer choice could lead to higher vehicle prices, limiting access to car ownership and essential transport services.
He further cautioned that Mombasa County could be disproportionately affected by reduced vehicle imports, citing the presence of Container Freight Stations (CFSs) that largely depend on imported vehicles.
“Thousands of jobs linked to vehicle imports, clearing, shipping, and logistics are at risk. If imports decline sharply, many businesses and employees in Mombasa will be affected,” he said.
The car importers’ chair also questioned the level of local content in current assembly operations, arguing that Kenya should first focus on developing a strong automotive parts manufacturing base before scaling up full vehicle assembly.
Additionally, Otieno raised environmental concerns, saying Kenya should align its automotive standards with Euro 5, Euro 6, and higher emission benchmarks, rather than supporting lower emission standards that are increasingly being phased out globally.
In response to the concerns, government officials reiterated that the Bill does not seek to ban or restrict used vehicle imports. They maintained that the legislation is intended to grow the automotive industry organically, create quality jobs, and expand the country’s manufacturing base.
Dr Mukhwana assured stakeholders that all views raised during the public participation forums in Mombasa, Kwale, and Taita Taveta counties would be carefully reviewed and considered before the Bill is finalised and submitted to Parliament.
By Chari Suche
