The prices of second-hand cars in Kenya could rise following a resolution by East African countries to lower the age limit of imported cars to just five years.
This means that over the next four years, newly imported second-hand cars across East Africa should be at least five years older than their brand new counterparts.
“Lack of clear policy on age limits has been identified as a factor contributing to increased imports of used vehicles, while also posing adverse impact on environment, safety and health,” states a policy brief on the report that was submitted to a summit of the EAC heads of state last week.
Under the proposals, EAC countries would harmonise the age limits for used car imports at eight years by 2019. This limit would then be lowered to five years by 2021.
Currently, the import age limit in Kenya is five years. However, Rwanda, Burundi and South Sudan do not have any such limits.
The report also recommends that the EAC invests in two large-scale assembly plants that will produce cars with a price range of between Sh516,200 ($5,000) to Sh1 million ($10,000).