Why used car imports are facing curbs

Isuzu East Africa Limited MD Rita Kavashe, Trade CS Lee Kinyanjui, PS Juma Mukhwana and Japan Ambassador to Kenya Hiroshi Matsuura during the launch of the locally assembled Isuzu Mu-X Luxury SUV in Nairobi on February 2, 2026. [Kanyiri Wahito, Standard]

The government is sieving through public participation feedback on the National Automotive Bill, 2025, with the document expected to come into effect by June this year.

The Bill, whose purpose is to encourage purchase of locally manufactured vehicles, will in part put restrictions on importation of second-hand automobiles and provide modalities on the end of life cycle of a car.

As such, the government foresees that this will grow the industry hence creating more jobs through parts value chain.

While local assemblers have backed this Bill, importers and dealers of second-hand vehicles which dominate the Kenyan market have had reservations.

Trade and Investment Cabinet Secretary Lee Kinyanjui has, however, promised a smooth transition of the sector.

The CS was speaking during the unveiling of Isuzu MU-X model which is now locally assembled. Kenya is the only country outside of Thailand where Isuzu is assembling this unit.

The government is deeply committed to developing our automotive industry through the national automotive policy,” said the CS. He said the objective of this policy is to spur job creation, enhance local content (local parts production), market expansion, skills development and promote a clean environment.

At the core of the policy is to strengthen the local automotive manufacturing and reduce reliance on fully imported units.

“The National Automotive Bill, 2025, has already gone through critical steps of public participation and is now undergoing further processes to incorporate views and submission during the exercise,” said the CS.

He added: “We intend to have the Bill enacted into law before the next financial year.”

In August last year, the government unveiled a Sh13 billion financing kitty for players in the automotive sector to boost local manufacturing and assembly.

State Department for Industry Principal Secretary Juma Mukhwana said the assembly of the unit locally by Isuzu is a testament that Kenya is walking the talk when it comes to building deeper manufacturing capability.

“We are fostering a world class production especially by building our local capacity and also taking Kenyan standards to global levels. It makes Kenya more competitive, meeting local demand confidently and overtime serving the region from a Kenyan production base. This aligns with the Buy Kenya Build Kenya policy initiative,” he said.

Isuzu East Africa Ltd MD and Board chair Rita Kavashe, said due to the tax incentives that the government has provided to the sector, a 3l Isuzu MU-X unit will cost Sh3.6 million less than its original price.

She detailed that the journey to have the unit assembled in Kenya has taken five years.

“With the assembly of this model, we are happy to say that 100 per cent of our Isuzu products are now locally assembled here in Kenya,” said Kavashe.

She said the price point will allow Kenyans to own an SUV, that is zero mileage at the same cost of an imported second-hand unit of the same model.

Kavashe said the vehiicle assembler will leverage on the leasing product to encourage uptake.

“We will leverage on leasing. It is gaining traction in our country. We have a new product for leasing. It has matured and has come of age,” she said.

Isuzu Motors International Operations Thailand President Junichi Kubo said initially, the MU-X was intended to have one manufacturing hub, Thailand, from where distribution will be done.

“But an exception had to be made when Kenya requested we consider a second assembly plant in Nairobi,” he said.