- Buyers will also be able to use the Kenya shilling as a trading currency and can participate from the comfort of their homes.
- The government has set aside 5,000 acres for the expansion of the Naivasha Special Economic zone.
Image: PCS
President William Ruto on Wednesday opened a Japanese car auction firm at the Naivasha Special Economic Zone, pointing towards reduced importation costs of used vehicles from the Asian market.
Dubbed ‘Jumbo Africa Auto Auction SEZ Limited’, the firm deals with pre-owned vehicles from Japan, currently Kenya’s largest source of imported used vehicles.
Official data shows for the 12 months period to June 2023, Japan accounted for 94.3 per cent of the 62,495 used vehicles exported to Kenya.
According to President Ruto, the venture by the new investor will allow buyers in Kenya, East Africa and the whole African continent to choose a wide variety of vehicles, ranging from cars and trucks to motorcycles and speciality vehicles, as well as machinery, mechanical appliances, vehicle parts, work trucks and handling equipment at reduced costs.
“Buyers will also be able to use the Kenya shilling as a trading currency and can participate from the comfort of their homes,” Ruto said.
“Further, competitive bidding will guarantee lower prices, enhancing the savings that buyers will accrue, compared to traditional purchasing and car importation processes.”
He added that the competitive pricing, high demand for vehicles will stimulate the country’s auto parts industry and overall activity in the automotive sector, leading to the expansion of the overall economy and the introduction and adoption of emerging technologies.
Commenting on the SEZ programme, president Ruto noted that it is coming of age, vindicating its driving vision of mobilising and leveraging private investment as the primary driver of economic growth in our country.
“By targeting both domestic and foreign direct investment, the SEZ programme aims to radically increase employment, significantly grow exports, substantially enhance supply chain spill-overs and new technologies, and boost Kenya's foreign exchange earnings,” he said.
“In particular, the programme represents a dedicated package of highly appealing fiscal, infrastructural, procedural and regulatory incentives, which have led to a steady rise in Kenya's global appeal as an investment destination.”
Attractive tax incentives, high-quality infrastructure, simplified business procedures and regulations, as well as value chain integration and the promotion of expanded market access for goods produced in the zones, have been lauded as some of the compelling features of this competitive incentive package.
With these and more attractive amenities, president Ruto reiterates that the Naivasha SEZ is poised to make a strong contribution to the transformation of Kenya's competitiveness.
Owing to its proximity to the Olkaria Geothermal electricity generation complex, Ruto says the availability of low-cost power tariffs significantly reduces the cost of doing business.
“The zone itself occupies a sprawling 1,000 acres within which an integrated industrial park, complete with a dedicated logistics area, cluster areas to support SMEs and 1,000 affordable housing units and associated amenities will be developed,” Ruto said.
“Consequently, we have set aside 5,000 acres for the expansion of the zone. In addition, the government has undertaken significant infrastructure development as follows: 1.56km of internal access roads have been constructed within the zone, as well as an inland container depot with a capacity to handle 100,000 units equivalent to 20-foot containers which in turn is connected to both the standard and metre gauge railway lines.”