Malindi: Stakeholders in the automotive industry from the North Coast Region have voiced strong support for the proposed National Automotive Bill, emphasizing the need for tax incentives to spur local automotive business. Speaking at a public participation forum held at Takaye Social Hall in Malindi Sub County, representatives from Lamu, Kilifi, and Tana River Counties highlighted the potential of the proposed legislation to generate thousands of jobs.
According to Kenya News Agency, the stakeholders asserted that the new law could significantly enhance Kenya's economy by fostering local vehicle assembly and spare parts manufacturing, thus reducing dependency on imported second-hand vehicles and parts. The attendees, comprising business leaders, technicians, traders, and members of the public, expressed concerns over the current tax regime, which they believe could negate any benefits from the new legislation. They noted the higher cost of locally manufactured automotive products compared to imported ones due to high taxation.
The forum forms part of a nationwide public participation exercise organized by the State Department of Industrialisation to gather public views before the Bill is presented to Parliament for debate and potential enactment. Majid Swaleh, Chairperson of the Kenya National Chamber of Commerce and Industry (KNCCI) in Kilifi County, urged the government to invest in training and introduce automotive engineering courses. He also recommended that high-ranking government officials, including Cabinet Secretaries, should use locally assembled vehicles to support local manufacturers.
Former Malindi MP Abubakar Mohamed Badawy expressed support for the Bill but cautioned against a hasty ban on used cars, as high taxes on new vehicles could adversely affect ordinary Kenyans. He also criticized the forum's inclusivity, citing limited awareness and long travel distances for participants.
Mr. Aliasgar Kasamjee, a KNCCI official, raised issues with certain clauses, such as the proposed 60 percent local content requirement. Other stakeholders welcomed the establishment of an automotive institute but suggested that the government should leverage existing technical institutions like vocational training centres to impart skills to the youth nationwide.
The participants urged Parliament to carefully consider their recommendations, emphasizing that the Bill's success hinges on affordability, inclusivity, and the genuine empowerment of local industries. The session was conducted by experts from the state department, led by Mr. Elijah Okumu, the Deputy Director in charge of Engineering and Construction at the State Department of Industrialisation.