•MPs dismiss proposal as 'a roadside declaration with no backing in law'.
•Munya had appeared before committee over suggestion to ban importation of cars older than eight years.
Image: FILE
MPs on Tuesday dismissed Trade minister Peter Munya’s proposal to reduce to five years starting July, the age limit of imported used cars of more than 1500cc.
Trade committee chairman Kanini Kega described the proposal as a "wayside declaration which has no backing in law".
The Kieni legislator said the status quo remains until the Cabinet secretary follows due process of making the policy work.
The CS was appearing before the committee to answer questions regarding the suggested ban of importation of cars older than eight years as is the case today.
Concerns by MPs, led by Kiambu’s Jude Njomo, is that the move will see millions of Kenyans pushed out of business and occasion job losses.
He said the proposed policy was in bad taste as it was arrived at without public participation as required by the law.
The lawmaker demanded explanations as to why the minister made the declaration before consulting the public and subjecting the same through a legislative process.
“How do you act on an unfinished document?” Njomo asked.
In backing his proposal, Munya said the measures will result in more job opportunities created by local assembly lines as well as cause an increase in direct foreign investments.
“Importation of cars creates few jobs compared to creating our local assembly which will take up locally-made car parts and spares,” the CS said.
A number of local car assembly lines currently operate at 16 per cent, producing 7,000 vehicles a year as a result of the current importation policy, he said.
Munya said the age-limit will be reduced gradually from eight to five years by July, three years by July 2021 and to zero by 2023.
“The only way to create jobs is by creating industries. The value-addition by local assemblies is about 35 per cent hence may fetch better prices compared with imported cars,” he said.
But MPs dismissed the proposal saying it will make cars more expensive to many Kenyans hence having a counterproductive effect on the economy.
Kega said, “The 50 per cent duty currently charged on the locally assembled vehicles has made them expensive. We know nothing of the proposal to phase out imports by July.”
In his admission, Munya said the proposal is still a work in progress and will be presented to Parliament once ready.
“I have no power to pronounce a law. All stakeholders will be involved and their participation will be factored in the final draft,” he said.
Kenya Auto Bazaar Association is among entities in the motor industry which have challenged the reduction of age limit for imported cars.
(Edited by R.Wamucii)