Thursday, August 7, 2014

Uhuru relaxes vehicle import rules for Kenyans abroad

Politics and policy
Consumers look at used cars at one of Nairobi's weekly car bazaars.
Consumers look at used cars at one of Nairobi's weekly car bazaars. Used car dealers accuse their new car rivals of supplying the taxman with inflated prices of models, causing a steep rise in the prices of used cars. Photo/FILE 
By ANTONY KARANJA in WASHINGTON DC
In Summary
  • The announcement will benefit Kenyans in the United States, the European Union and the Middle East.
  • The United States is among more than 264 nations and territories that drive on the right.
  • The President encouraged those living abroad to invest in Kenya, especially in real estate.

Kenyans abroad who sell their left-hand-drive cars when returning home will soon be allowed to import right-hand-drive vehicles duty free.

 
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The announcement is aimed at thousands living and working in the United States, the European Union and the Middle East, among other places.
President Uhuru Kenyatta has ordered a change in import rules to take care of a quirk that disadvantaged those living in countries that drive on the right. While expatriates who have owned a vehicle for at least one year can import them duty free, a ban on left-hand-drive cars has meant some Kenyans in diaspora cannot take advantage of the facility.
The President directed Cabinet secretaries Michael Kamau (Transport), Henry Rotich (National Treasury) and Adan Mohammed (Industrialisation) to work out a way to ease the import rules for those affected.
He was addressing Kenyans at the Marriott Wardman Park hotel in Washington DC where he had travelled to attend a leaders’ summit.
The United States is among more than 264 nations and territories, home to 65 per cent of the world’s population, that drive on the right. Kenya, like the United Kingdom and other former British colonies, has a road network in which everyone drives on the left.
To import a vehicle duty free you must have resided outside Kenya for at least two years during which period you should not have visited Kenya for a total of more than 90 days. You must have personally owned and used the motor vehicle for at least twelve months but it must not be older than eight years.
Only Kenyans aged above 18 who have not been granted a similar exemption previously are eligible.
The President encouraged those living abroad to invest in Kenya and named real estate industry as a profitable venture.
“Invest in government plans like housing, energy and health,” he said. “By building an estate of 1,000 houses using the PPP (public-private partnership) model, Diaspora investors would get better return on their money than just hiding it in banks.”
The President also assured Kenyans abroad that the government will provide the Independent Electoral and Boundaries Commission with the support it needs to ensure they take part in the 2017 General Election. He added that new consulates will be opened in Texas and Minnesota to enable Kenyans in the US access more services.

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