Buyers complain as KRA disposes several unclaimed vehicles

Buyers take part in the KRA vehicle auctioning at Kenya Ports Authority in Mombasa Photo/Kelvin Karani

MOMBASA, KENYA: Hundreds of car buyers thronged the Kenya Revenue Authority (KRA) port auction yard at Mombasa port on Tuesday to buy vehicles that have been unclaimed for years or seized non-payment of tax.
KRA offered about 800 vehicles at the Mombasa port auction but stiff bidding soared prices leading to protests from some buyers who claimed the cars were more costly than those in showrooms.
A prospective buyer Mr Hussein Madwan noted that a Toyota Belta was sold at as high as Sh1 million at the fall of the hammer as opposed to Sh700, 000 to 800,000 in the showrooms.
"Today prices as turning away many of us. Good vehicles attracted many prospective buyers but this has led to higher prices compared to previous auctions," Madwan protested.
Mr Meshack Owino who is a regular participant at the KRA auctions noted that a Toyota Belta could sale for as little as Sh600, 000 in showrooms and wondered why some people had the guts to take the vehicles for about Sh900,000 or more at the auction.
"I suspect many of the bidders today are new to this auction and also not similar with prices of vehicles in showrooms. They have offered higher prices than those in newsrooms and make the auction a sham. I think they are buying the vehicles for personal use and not for resale," Owino noted.
Another potential buyer Dr Omar Said claimed he was turned off by the stiff competition as he had expected lower prices compared to showrooms in town.
KRA's chief manager for Southern Region Mr John Bisonga said valuation had been done on the vehicles before they were offered at the auction to ensure government did not lose taxes.

He said apart from vehicles, about 20 containers with assorted goods which could not be sold in previous auctions for various reasons were also on sale.
"These auctions are intended to get revenue due to Government. We held two auctions this month and we plan to hold an auction every month to free the space in our warehouses," he explained.