By Jabali Digital
The proposed automotive industry development bill, 2025 has sparked mixed reactions from industry players and members of the public, with sharp divisions emerging over its potential impact on jobs, technology transfer and the local economy.
Addressing the press on the sidelines of a public participation exercise in Kisumu on Tuesday, Car Importers Association national chairman Peter Otieno strongly opposed the bill, arguing that it will not deliver meaningful local value addition as claimed by its proponents.
Otieno said that the majority of the vehicles assembled locally rely almost entirely on imported parts, noting that Kenya currently produces very few automotive components.
He said only body panels used in buses and lorries are locally fabricated, while all other parts are foreign-manufactured.
“We disagree because all the parts that are being fixed on those particular vehicles are foreign manufactured parts. Kenya does not have any parts apart from the panels that we are using on buses and lorries,” he said.
He warned that the bill risks favouring a few players while disrupting existing businesses such as vehicle imports, which currently provide affordable mobility options for many Kenyans.
Further, he questioned the competitiveness of locally assembled vehicles, citing higher costs and lower comfort levels compared to imported used vehicles, stating that before passing the bill, lawmakers should focus on strengthening local content laws and ensuring genuine technology transfer.
“We have between 30,000 to 40,000 parts in a motor vehicle. If we are serious, we should start by manufacturing basic components like brake pads, tyres, rims and windscreens locally,” he suggested.
However, Paul Lomet, a Kisumu resident, welcomed the bill, describing it as timely and necessary for Kenya’s industrial growth.
If passed, Lometo said the legislation could help “Kenyanise” automobile technology by attracting assembly plants that would allow skills and expertise to be transferred to local workers.
“If these companies assemble vehicles here, the technology will be assimilated by Kenyans,” he said, adding that the bill should prioritise employing Kenyans at all levels, except where specialised foreign expertise is required.
Additionally, he called for fair pay structures to prevent wage disparities between foreign and local employees, arguing that the bill could spur job creation, boost small manufacturing industries and turn Kenya into a regional exporter of automotive products.
The draft Bill seeks to provide for legal, institutional, and regulatory frameworks for the development and promotion of the automotive industry, besides providing for the establishment of the national automotive council and automotive institute.
