Used vehicle importers lock horns with NTSA over listing directive
Second-hand vehicles at a car yard in Mombasa County.
What you need to know:
- Importers wants the notice declared null and void and NTSA be restrained from interfering with imported vehicles.
- The petitioner said it has sent a letter to NTSA raising concerns about the notice but the agency has not responded.
Importers of used motor vehicles have sued the National Transport and Safety Authority (NTSA) challenging its notice to all motor vehicles dealers to register unregistered vehicles in their possession.
Under the umbrella of Car Importers Association of Kenya (Ciak), the importers say that on or about December 7, they saw from NTSA website a notice that required dealers, who are primarily members of the association, to register the vehicles.
According to Ciak, the notice stated that if the vehicles are not have been registered, they would be impounded and dealers prosecuted for committing whatever crimes NTSA would come up with.
In its petition at the High Court in Mombasa, Ciak wants the notice declared null and void and NTSA be restrained from interfering with imported vehicles lying in any of its members’ showrooms based only on the issue of non-registration.
The importers also argue that they had for a long period of time pleaded with relevant authorities to allow them clear the vehicles to enter their showrooms without registration.
The petitioner says that its members have always requested that they be allowed to register the vehicles upon securing buyers for them.
“The commercial reason for the petitioner’s request is based on the fact that registration of motor vehicles at the points of clearance creates a prejudice in the minds of potential buyers (who would like to buy them six months down the line) that such vehicles are already deemed as relatively old,” part of the petition states.
According to Ciak, its members are forced to sell the vehicles bearing relatively old registration numbers at prices that are below the correct value of the units thus making huge losses.
It argues that importers of new motor vehicles are treated in a favourable manner by government agencies as they are allowed access to their imported new units prior to payment of duties and registration.
“Such franchise dealers pay applicable duties and register their units only at the point of sale of the same end users,” argues Ciak.
It further says that NTSA has acted in a biased manner whereby it has favoured franchise dealers compared to importers of used motor vehicles who not only pay revenue at the point of clearing the vehicles but the authority also demand that such units be registered at the point of exiting the customs areas.
Ciak says that its members currently hold a large number of used imported motor vehicles which were properly cleared, applicable revenues paid which NTSA and other government agents allowed the vehicles to exit various custom areas and are lying in showrooms belonging to its members awaiting to be sold.
According to the petitioner, it has sent a letter to NTSA raising concerns relating to the notice and that the government agency has not responded.
Ciak says that it is afraid that its members' unregistered vehicles may be unlawfully impounded and its members may be charged in a criminal court.
It also argues that NTSA’s action and further threatened action will, if carried out, cause its members to suffer violation of their socio economic rights and the roads agency will have acted in gross abuse of its powers.
“The respondent (NTSA) acted jointly with Kenya Revenue Authority, Kenya Bureau of Standards together with the police and port health in releasing the motor vehicles upon applicable revenue having been paid to the government,” argues CIAK.
It further argues that NTSA created a reasonable and legitimate expectation in the minds of its members that they were at liberty to trade in the motor vehicles and register them at the point of securing buyers for the units.
Ciak also argues that NTSA has not engaged it in any type of public participation in arriving at the decision to have all vehicles be registered.
“In the event NTSA carries out its threat contained in the impugned notice, the members will lose their imported motor vehicles and suffer grave economic losses since the vehicles were imported at huge costs by the members and were meant to create profit for the businesses,” argues Ciak.
It says that the members risk being charged with criminal offences and will suffer great mental torture in defending themselves against unwarranted criminal charges.
Ciak is also seeking for an order to have the NTSA notice on unregistered vehicles by motor dealers amount to a violation of its rights under the constitution.
In the meantime, Ciak wants pending hearing and determination of the petition, a conservatory order be made suspending the implementation of the undated public notice on unregistered vehicles by motor vehicle dealers issued by NTSA.
NTSA was yet to respond to the case, filed under certificate of urgency, by Wednesday morning.
