The Kenyan government has announced plans to stop importing second hand cars by 2026, a move that seeks to grow the local car assembly industry. This comes at a time when the National Treasury notes that second hand cars make up more than 85% of the imported fully built units (FBUs) in Kenya.
The government, through the Ministry of Industrialisation, drafted the National Automotive Policy that also seeks to spur growth in local car assembly as it prescribes clear measures to promote utilisation of locally manufactured products, local content, sub-contracting, innovation, research and development, capacity and skills development and training, and technology transfer.
Furthermore, the automotive policy is also aimed at creating jobs for the youth, enhancing local value addition, and raising the manufacturing sector’s contribution to the economy.
Meanwhile, Local carmaker, Mobius Motors, has launched a new KSh330 million manufacturing plant in Nairobi. According to the company’s Chief Operating Officer, Nicolas Guibert, the factory will produce at least eight units daily. Additionally, the assembly line for passenger vehicles at the facility incorporates fabrication, body shop, paint shop, general assembly, and final line testing.