Kenya vehicle dealers hit hard by Uganda U-turn
Kenya still faces threats from old vehicle importation following a move by neighbouring Uganda to turn back on its importation policy proposal.
Uganda Revenue Authority (URA) had in April directed that imports of vehicles older than nine years be cleared under the East Africa Community’s Single Customs Territory (SCT).
The directive that was set to commence from July 1, would have allowed members of the bloc to jointly collect customs taxes. The move was meant to ensure that vehicles destined for Uganda are cleared by the Ugandan Authorities ahead of their release from the ports.
It would have made it difficult for crafty Kenyan and Uganda businessmen to import old models under the pretext that they are destined for Uganda. However, in a twist of events, Uganda has backtracked in the move, saying the rule will now apply to vehicles aged more than 13 years.
Warehousing system
“The general public is hereby informed that effective July 1, 2022, motor vehicles that are 13 years and above from the date of manufacture shall no longer be cleared under the warehousing system,” URA said in a June 2022 notice.
The latest directive has given Uganda dealers a window to import old cars up to 13 years that often end up in the Kenyan market.
EAC member-states had agreed to lower the age limit for imported used cars to five years by 2021 which was never achieved. Among the EAC Member states, only Kenya has affected the age limit for importation of second-hand cars which currently stands at eight years.
Tanzania allows imports of cars as old as 10 years while Burundi, Rwanda, and South Sudan, have no formal age limits.
