Car Importers Demand Total Withdrawal of National Automotive Bill, 2025

By Kepher Otieno - Reporter

Kenya, 17 December 2025 - Car importers have stepped up pressure on the government to withdraw contentious provisions in the proposed National Automotive Bill, 2025, warning that the draft legislation could have far-reaching negative consequences for Kenya’s automotive sector.

The Car Importers Association of Kenya (CIAK) has criticised the proposed regulations, particularly clauses that would adversely affect the used-car import market, which dominates vehicle sales in the country.

CIAK chairman Peter Otieno said the association is opposed to provisions touching on end-of-life vehicles, new cargo origin rules and possible limits on the age of imported vehicles.

“We reject the Bill in totality and call for its withdrawal,” Otieno said, arguing that the proposals risk destabilising an industry that supports thousands of livelihoods.

He warned that the policy appears skewed towards benefiting a small number of local assemblers at the expense of dealers, mechanics, transporters and informal workers who depend on the used-car trade.

“We want laws that promote a healthy business environment for car dealers,” he added.

The draft Bill proposes the regulation of end-of-life vehicles to support the supply of spare parts for local manufacturing and includes measures that could restrict the importation of older used cars. Similar proposals in the past have sought to gradually phase out used vehicle imports altogether.

CIAK contends that such measures fail to reflect current market realities, particularly affordability constraints for consumers and the limited capacity of local assembly plants.

Otieno was speaking in Kisumu on Tuesday during a public participation forum on the draft National Automotive Bill, where the majority of participants called for the withdrawal of the proposed law rather than piecemeal amendments.

Concerns were also raised by representatives of the informal sector, who warned of potential job losses if the Bill is implemented in its current form. Ochieng Abuto, representing Kisumu’s jua kali and transport sectors, said many skilled workers risk being pushed out of the industry due to stricter regulatory requirements.

“We feel that there is going to be a lot of job losses as compared to those that may be created,” Abuto said, noting that many youths in the jua kali sector possess practical skills but lack formal certification that may be required under the new regime.

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He questioned whether the promised gains from local manufacturing would compensate for losses in the informal economy, which employs a large number of young people.

Abuto also raised concerns over the financing of the proposals contained in the draft law, urging the government to clarify who would bear the cost of implementation.

“Right now majority of Kenyans are struggling financially and hence they would not need anything that piles more pressure on them,” he said, warning against the introduction of new taxes or levies to fund the reforms.

The draft regulations were developed by the Ministry of Investments, Trade and Industry in collaboration with other government agencies and seek to establish a legal, institutional and regulatory framework for the development and promotion of the automotive industry.

Key proposals include the creation of a National Automotive Council and an automotive institute to oversee skills development, policy coordination and sector regulation.

Under the Bill, the proposed National Automotive Council would be mandated to promote sustainability initiatives across the sector, including the regulation of end-of-life vehicles and environmental compliance.

Despite opposition from importers and informal sector players, the government maintains that the proposed law would boost local manufacturing and vehicle assembly, deepen the automotive value chain and create new jobs.

Officials argue that, if properly implemented, the regulations could support small and medium-sized enterprises and improve environmental outcomes.

As public participation continues, the debate underscores the challenge facing policymakers in balancing industrialisation ambitions with affordability, employment and the realities of an economy heavily reliant on used vehicle imports.