Car importers in the country have petitioned the government to withdraw controversial aspects of the National Automotive Bill 2025, citing far-reaching implications for the sector.

In a press briefing on Tuesday, December 16, 2025, the Car Importers Association of Kenya (CIAK) Chairperson, Peter Otieno, said the proposed draft regulations, especially the provisions that would negatively impact the used car import market.

“We reject the Bill in totality and call for its withdrawal. We want laws that promote a healthy business environment for car dealers,” Otieno said.

The association is also concerned about other regulations proposed by the draft bill, such as new cargo origin rules and age limits on imported vehicles.

The bill entails provisions for regulating “end-of-life” vehicles to provide spare parts for local manufacturing and potentially limits the age of imported used cars, with past proposals aiming to phase out used imports entirely.

But CIAK argues that the policy would benefit only a few assemblers and harm the livelihoods of many Kenyans involved in the used-car market.

Stakeholder’s proposals

Despite the majority pushing for the scrapping of the proposed laws in their entirety, Otieno said the bill’s contentious clauses can, however, be reviewed or amended.

Moreover, on his part, Ochieng Abuto, a representative of Kisumu’s Jua Kali and transport sectors, asked the government to review the proposed regulations, expressing fears that there could be massive job loss if it is implemented in its current status.

According to Abuto, many youths in the Jua Kali industry who are skilled but lack certification risk being rendered jobless as their qualifications may fail to meet the required skills.

“We feel that there is going to be a lot of job losses as compared to those that may be created in the informal sectors if the plans by the government to revolutionise the industry are to go by,” Abuto said.

Further, he raised concerns over the mode of financing the proposals in the draft laws, urging the government to come clean on who would bear the burden before the Bill is actualised.

Abuto argued that many Kenyans feel overburdened economically and would not want more taxes imposed on them to finance additional development plans.

“We want the government to clarify how the implementation of the draft law recommendations is going to be funded. Right now majority of Kenyans are struggling financially, and hence they would not need anything that would pile more pressure on them,” he added.

The bill

The draft regulations developed by the Ministry of Investments, Trade and Industry in collaboration with other relevant government ministries, seek to provide for a legal, institutional and regulatory framework for the development and promotion of the automotive industry.

It also aims to establish the National Automotive Council and Automotive Institute.

The draft legislation will then empower the proposed National Automotive Council to promote sustainability initiatives across the sector, including the regulation of end-of-life vehicles.

The government is, however, optimistic that the proposed law would boost local manufacturing and assembly and create jobs within the local value chain.

It is expected that under the new regulations, the sector could generate new jobs, support small and medium enterprises as well and improve environmental outcomes.