PUSHED PRICES UP

Auto spare parts dealers cry foul over high taxes

They say their businesses might collapse if the import duty imposed on imported metallic products is not revised downwards.

In Summary

• In the 2020-21 financial year, the government imposed a 35 per cent import duty on iron and steel products as a way to protect local manufacturers.

• Njagi Muriuki, a mechanic, said they are struggling to make ends meet due to the low number of customers streaming into their businesses.

A mechanic repairing a public service vehicle in a Kerugoya based car garage
A mechanic repairing a public service vehicle in a Kerugoya based car garage
Image: WANGECHI WANG'ONDU
An auto spares shop in Kerugoya town
An auto spares shop in Kerugoya town
Image: WANGECHI WANG'ONDU

Auto-spare parts dealers in Kerugoya want the government to reduce import duty on metallic products and car accessories.

They said their businesses might collapse if the import duty imposed on imported metallic products is not revised downwards.

In the 2020-21 financial year, the government imposed a 35 per cent import duty on iron and steel products as a way to protect local manufacturers.

Kerugoya auto-spare parts dealers' chairperson James Mugo said those who import the products have been forced to dig deeper into their pockets.

“It has been a tall order to run our businesses over the past one year. The high cost of basic goods coupled with the expensive cost of metal wares and car spare parts have pushed our businesses to the edge. Some months back we were buying brake pads at Sh800 per piece compared to the current Sh1,200,” Mugo said.

Samson Ochieng, an automotive painter, hopes the government will hear their cry and create a friendly business environment for them. He said most customers don’t understand the reasons why some car repair services are expensive.

“We can’t work without tools. We are forced to import them. Most of our customers complain that we are expensive while charging for the services we deliver because they don’t understand the difficulties we go through while ordering for the tools.”

“The price of auto body filler has skyrocketed from Sh1,200 to Sh2,200. So when we charge for the services, we have to charge extremely high to get  profit.”  

Njagi Muriuki, a mechanic, said they are struggling to make ends meet due to the low number of customers streaming into their businesses.

He said the situation has been aggravated by the Covid-19 pandemic which has paralysed many businesses.

David Otieno, an auto spares trader, hopes the government will lift the heavy taxation weight off their shoulders.

He said for a better part of the year, business has gone down as he is forced to cater for shipping costs and other expenses incurred while importing his goods.

“We are optimistic that in the coming fiscal year, things will be better. We appeal to the government to reduce the high taxes on the goods we depend on for survival.”

“We immensely contribute to improving the state of our economy, thus the government should create a friendly business environment for us too,” he said.

Besides Kenya, other East African community countries implemented the same measure at the beginning of the current financial year as a way of boosting the competitiveness of the regional manufacturing industry.

 

A mangled wreckage in one of the Kerugoya town garages
A mangled wreckage in one of the Kerugoya town garages
Image: WANGECHI WANG'ONDU
Car rims
Car rims
Image: WANGECHI WANG'ONDU
WATCH: The latest videos from the Star