Molo MP Kuria Kimani has defended the government’s proposal to implement a motor vehicle circulation tax, saying it is a means to stimulate investment in public transport infrastructure.
The tax, outlined in the 2024 Finance Bill, aims to impose an annual levy, starting at a minimum of Ksh.5,000 or 2.5% of the vehicle’s value, payable upon acquiring insurance cover.
Kimani has likened this tax to a blend of income and wealth tax, emphasizing its role in promoting a robust local public transport system.
In an interview with NTV, Kimani highlighted the necessity of enticing foreign investment in the country’s public transport sector.
“Every time investors want to invest in our public transport system through public-private partnerships, the feasibility studies show that we like to drive our cars so much that we are not able to attract foreign investment,” he said.
He suggested that Kenyans’ inclination towards private cars stems from the inadequacies of the current public transport infrastructure.
Kimani proposed that if presented with a superior alternative, Kenyans would opt out of using private vehicles.
Moreover, Kimani emphasized that payment of the motor vehicle circulation tax is optional: individuals can avoid it by refraining from using their cars altogether.
“If you don’t want to pay the motor vehicle circulation tax, then don’t use the car, like how you don’t use the expressway if you don’t want to pay for it,” he said.
The proposed bill exempts ambulances and government-owned vehicles from this tax, as per the Privileges and Immunities Act. However, failure to collect and remit the tax within the specified timeframe could result in penalties for underwriters.
Kimani’s stance underscores the broader debate on taxation and incentivizing behavioral shifts towards sustainable modes of transportation.
