A storm is brewing in Kenya’s motoring sector as the proposed Automotive Bill, 2025 draws sharp criticism from vehicle importers who say it could cripple the car market, push prices through the roof and suffocate consumer choice.

At the heart of the revolt is Peter Otieno, Chairman of the Kenya Vehicle Importers Association, who has joined other stakeholders in rejecting the Bill “in totality,” warning that if passed, it could price the ordinary Kenyan out of car ownership while benefiting only a few powerful players in local assembly.

“A car is made up of between 30,000 to 40,000 spare parts,” Otieno says. “Yet, the cost of an imported car today is cheaper than the total cost of those parts used in locally assembled vehicles. That tells you something is seriously wrong with the economics behind this Bill.”

The Automotive Bill, currently undergoing public participation across the country, seeks to anchor Kenya’s automotive policy into law by promoting local assembly and manufacturing, curbing importation of used vehicles and setting up a framework for end-of-life vehicle management.

But industry players argue the Bill is disconnected from market realities, accusing policymakers of trying to industrialize by decree.

Otieno’s association insists that while the government’s intentions are noble, the Bill’s execution could deliver a heavy blow to the consumer, who already faces rising taxes, fuel costs and inflation.

“If the Bill passes as is, Kenyans will pay more for cars, parts and maintenance,” he warns. “You can’t legislate local assembly into success. It has to be competitive, not coercive.”

Perhaps more damning are Otieno’s remarks on vehicle quality and safety.

“The safety and security nature of imported cars is better compared to those locally assembled,” he notes, citing rigorous global safety testing and manufacturing standards in source countries like Japan, the UK and Germany.

Imported vehicles, he argues, arrive in Kenya fully tested and certified, while locally assembled cars often rely on semi-knocked down (SKD) kits, where parts are fitted locally but lack comprehensive performance testing.

Critics fear that the Bill, by protecting local assemblers from competition, might lower safety benchmarks while doing little to make cars affordable.

If passed, the Bill would mandate that a larger portion of Kenya’s car market be supplied through local assembly lines. It would also empower the government to restrict importation of certain used models, a move importers say will hurt small dealers and middle-income families who depend on affordable second-hand cars. Otieno spoke in Kisumu during public participation that drew participants from across neighbouring counties. 

“This Bill favors multinationals with assembly plants while locking out thousands of small traders,” Otieno says. “We support industrial growth, but not at the expense of the mwananchi.”

Conversely, supporters of the Bill, led by the Ministry of Investments, Trade and Industry, argue that local production could create thousands of jobs, stimulate manufacturing linkages and reduce the country’s import bill.

But economists warn that without robust infrastructure, reliable power and incentives for mass production, the price of locally assembled vehicles will remain beyond the reach of most Kenyans.

As Parliament prepares to debate the Bill, the nation faces a defining choice:

Pass the Bill and risk making cars a luxury item once again for many households or, reject it and stall the government’s dream of a self-reliant automotive industry.

Either way, Kenya’s road to industrialization appears bumpy.

“We must balance ambition with affordability,” Otieno cautions. “If you make car ownership impossible, you choke mobility, business and even the dream of a working middle class.”

Whether the Bill accelerates Kenya’s industrial drive or stalls it in policy traffic will depend on how Parliament navigates these competing interests. For now, importers like Peter Otieno have sounded the alarm and Kenyans, already feeling the economic pinch, are watching closely which way the government turns the wheel.