A section of motor vehicle importers and automotive industry stakeholders have strongly opposed the proposed National Automotive Industry Development Bill, 2025, arguing that it is restrictive and was drafted without adequate consultation.
Speaking during a public participation forum held at the Agricultural Training Centre (ATC) in Kisii, industry players accused the government of excluding key actors such as vehicle importers, small-scale mechanics, artisans, and garage owners from the lawmaking process.
Car Importers Association of Kenya (CIAK) chairperson Peter Otieno, speaking in a televised interview, said the Bill should be withdrawn and comprehensively reworked to accommodate all stakeholders in the sector.
“This Bill has already been rejected. It must be taken back for redrafting so that it becomes inclusive and reflects the realities of everyone in the industry,” Otieno said.
Under the proposed legislation, all vehicle manufacturers and assemblers would be required to register with and obtain licences from a newly proposed National Automotive Council (NAC). The council would also have the authority to impose levies and penalties.
Industry players warned that introducing another regulatory body would increase bureaucracy, raise operational costs, and potentially force small and medium-scale dealers out of business.
The Bill further proposes tighter controls on the importation and sale of second-hand vehicles — a move importers say could unfairly favour large local assemblers while crippling the used-car market that employs thousands.
Despite the Bill being presented as a tool for boosting manufacturing and job creation, stakeholders expressed concern that it could instead lead to widespread job losses among car importers, spare parts traders, and garage operators who depend on used vehicles.
Representing the Jua Kali sector, Earnest Mokaya called for greater transparency and wider dissemination of the proposed law before further discussions are held.
Kisii Industrial Artisans Association chairperson David Mbadi echoed similar sentiments, saying the sector needs sufficient time and meaningful engagement before such sweeping reforms are implemented.
“Reforms must follow a clear process with consensus at every stage. At this moment, the general position is that this Bill cannot work as it is,” Mbadi said.
While the Automotive Industry Development Bill aims to streamline regulation, promote local manufacturing, and align Kenya’s automotive sector with international standards, stakeholders have urged the government to extend the public participation period.
They are also calling for the Bill to be made easily accessible to the public and revised in a way that balances regulation, affordability, job protection, and economic inclusion.