Panic hits used car importers as time runs out on 8-year rule

Car importers

Importers and dealers of used cars in Kenya are facing losses that could run into millions of shillings, due to delivery delays at the Mombasa port.

This is due to the extension of transport times caused by the disruptions in the Red Sea following the attacks by the Houthi rebels which have lasted for a year now, forcing shipping companies to continue to reroute to the Cape of Good Hope (Africa). from the South), before going back to the East.

For example, transit time between Mombasa and major global ports has increased from an average of 24 days to 40 days, with some ships taking even longer as they call at different ports before reaching their final destination.

According to the Kenya Bureau of Standards (Kebs), vehicles exported to Kenya must comply with the eighty-year rule, which includes a roadworthiness certificate issued by Quality Inspection Services Inc. Japan (QSJ), which is an inspection. company hired by Kebs.

“Any vehicle registered in 2017 or earlier, arriving after December 31, 2024 will be deemed non-compliant and will be rejected at the expense of the importer,” Kebs general manager Esther Ngari said in a notice published on November 28.

With just 26 days until the December deadline for 2017 units, which blocks vehicles older than eight years under Kenya’s second-hand rule, dealers now fear the country could see one of the worst incidents of non-clearance of units on time. .

“This could be worse than what we have seen before, because unlike previous years where we placed orders early and then arrived on time, travel today is unpredictable following the disruption of the global supply chain. We are seeking engagements with government to see how losses can be avoided,” Car Importers Association of Kenya national president Peter Otieno told the Star yesterday.

The last time importers were hit with losses due to late imports was in 2014, when more than 2,000 used motor vehicles registered in 2006 were barred from the country.

Since then, importers have missed deadlines and no major lockouts have been reported, with the exception of 2020 when the Covid-19 pandemic hit.

During the year, more than 18,000 units manufactured in 2013 arrived late due to disruptions to the shipping industry caused by the pandemic.

The government allowed clearance of units whose delays were solely due to delivery delays.