Second-hand motor dealers in Kenya have expressed concerns over the potential influx of older cars into the local market due to the establishment of a second-hand vehicle auction by Japan in Naivasha, which is expected to supply cars to different regional markets with varying age limits.
Charles Munyori, secretary-general Kenya Auto Bazaar Association, highlights the variation in age limits among regional countries for imported cars, expressing concern that the Japanese yard, catering to multiple African countries, may introduce vehicles exceeding Kenya's eight-year limit to the local market.
The Special Economic Zones Authority (SEZA) has confirmed the commencement of the inaugural auction of Japanese used cars in Naivasha, set to open to the public on April 24, 2024.
Mr Munyori has voiced frustration over the lack of information surrounding the establishment of the Japanese second-hand car auction locally, citing apprehensions about its compliance with Kenya's importation standards, in an interview with Business Day Africa.
"We have got no any information regarding the Japanese auction and our fear is whether they will adhere to Kenya's standards concerning importation of second-hand vehicles," said Mr Munyori.
With Japan being a major source market for Kenya, particularly favoured for the Toyota brand due to its cost-effectiveness and spare part availability, Kenyans typically procure these vehicles through third-party importation or local second-hand car dealers.
President William Ruto initially announced the establishment of the Japanese auction in Naivasha during his State visit to Japan this year in February, concurrent with the signing of a framework agreement between Kenya and Japan's Toyota Tsusho Corporation to collaborate on vehicle manufacturing and renewable energy development.
Under this agreement, Toyota plans to invest Ksh800 million in establishing a vehicle manufacturing plant in Kenya's Thika region.
Second-hand car dealers express concerns over potential business displacement, citing the lower prices that older vehicles, exceeding the eight-year limit, could fetch if introduced into the local market.
However, the government contends that hosting a Japanese auction locally will reshape the automotive landscape by significantly reducing the cost of importing Japanese vehicles.
