Interior CS Fred Matiangi unveils new number plates for a section of motorists

Interior CS Fred Matiang’i has released new number plates that will be used by a section of motorists and motor vehicle dealers.

CS Matiang’i made the unveiling after receiving a report on the revalidation of motor vehicle dealers and operators of garages by a multi-agency team on Friday January 28, 2022.

The government has moved to tighten regulations and curb proceeds of crime laundered through such businesses to fund terrorism among other criminal activities.

“The new special plates for garage operators (KG), tow trucks (KT) and container freight stations (KC) launched by NTSA will replace the red KG plates as from February 1, 2022,” CS Matiang’i said.

CS Fred Matiang'i unveils new special plates for garage operators(KG), tow trucks(KT) & container freight stations(KC) Pulse Live Kenya

Motor vehicle dealers have until April 30 to present credentials for fresh digital registration.

KG plates are short-term dealership/garage plates with a special insurance cover for vehicles awaiting number plates or without insurance.

KG is a Kenya Garage plate for use by garages and car dealers when they want to put a car on the road that has no insurance.

Government's interest in car dealers

The government has also been trying to get car dealers to help curb money laundering by providing frequent reports to the Finacial Reporting Centre.

The Financial Reporting Centre has been planning to introduce a policy that will compel car dealers to report all transactions above Sh1 million.

FRC acknowledged that second-hand cars contribute to 90 per cent of all car purchases in Kenya, a sector that has become an avenue for money laundering.

Drug dealers, the crooked, and fraudsters have a penchant for buying vehicles, residences, and property in cash, according to the money-laundering watchdog.

“For them (car dealers) it is a big challenge because it is an industry that’s not regulated. Other than NTSA issuing permits prescribing them as second hand car dealers, it is more or less unregulated,” FRC Director-General Saitoti ole Maika told the media in 2021.

Car import data

According to the latest data from the Kenya Bureau of Statistics, Kenyans imported an extra 13,753 second hand vehicles in the nine months to September 2021.

Approximately 78,304 cars were imported, which represented a 21 per cent increase from 64,551 units in similar period in 2020.

“The increase of the 13,000 plus units is mainly due to overflows from 2020 to 2021. Remember the disruptions when restrictions were imposed, these led to delayed arrivals of orders made,” Charles Munyori the secretary-general of Kenya Auto Bazaar Association explained the jump.

The second-hand automobile market in Kenya is dominated by Japanese vehicles, which account for more than 80% of the market.

Mazda Demio, Toyota Fielder, Toyota Rav 4, Toyota Vanguard, and Nissan X-Trail are just a few of the popular models whose yard prices have risen as a result of supply disruptions and rising transportation costs.