Why many incentives may not help grow Kenya’s car assembly sector

Latest official data shows that Kenyans are importing about 8,000 used cars every month. This is in comparison to about 500 new cars that are being sold on average in the country on a monthly basis.

This is happening amid concerted efforts by the government to offer heavy protection that includes huge tax exemptions to foreign automotive manufacturers through local assemblers and new motor vehicle franchise holders. The government is doing this in the belief that this will spur economic growth, create employment and become a key driver of technological advancement.