Car Importers Oppose New KRA Rule on Certificate of Origin, Cite Rising Costs.

By Ian Maleve

Car importers in Kenya are pushing back against a new directive by the Kenya Revenue Authority (KRA) that requires all vehicle imports to be accompanied by a certificate of origin.

The importers argue that the rule is duplicative, unnecessary, and will lead to increased operational costs, which may ultimately be passed on to consumers.

The requirement, which is part of broader efforts to enhance trade documentation and prevent fraud, mandates that all importers provide proof of the country where the vehicle was manufactured before clearance at Kenyan ports.

However, the car dealers say that vehicles already undergo rigorous verification processes, including inspection and valuation, which confirm their authenticity and origin.

According to the importers, the new rule is not only time-consuming but also burdensome, especially for used vehicle traders who source cars from multiple markets such as Japan, the United Kingdom, and South Africa.

Obtaining the certificate of origin, they say, involves dealing with additional foreign agencies and paying extra fees, all of which slow down the import process and raise overall costs.

They are calling on KRA to review the directive and consider exempting car imports from the requirement, or at the very least, allowing other forms of documentation that are already accepted globally in the vehicle trade.

Many in the industry believe the policy could disrupt the flow of vehicles into the country and threaten the survival of small and medium-sized import businesses.

The Kenya Auto Bazaar Association and other trade groups have indicated they will seek dialogue with government agencies to address their concerns.

They argue that while the goal of improving customs efficiency is valid, it should not come at the expense of trade facilitation and business sustainability.

As discussions continue, importers have warned that if the rule is enforced without revision, car prices may rise, impacting affordability for many Kenyans and further straining the already volatile automobile market.