Need to know when purchasing ex-gk vehicles

Due to difficult economic conditions, Kenyan drivers have come to favor government-owned cars, making showroom cars a luxury.

As a result of agreements the state entered into with automakers to provide brand-new automobiles on lease, it is now required to sell hundreds of used cars at public auction.

Prospective car owners have flooded auction sites because cars are selling for as little as Ksh10,000, drawn by the bargain prices.

Each purchase, however, must have its specifics changed in order to be completed.

A sales agreement with a payment schedule for the chosen sum is given to the winner. Most auctions require a deposit before participating in an auction which is factored in.

"New owners, upon completion of payment, are presented with documentation including the log book and registration certificate of the car," he stated.

The Kenya Revenue Authority (KRA), where the customs duty paid for the vehicle is determined, is then presented with the sales agreement. 

"The taxman tabulates based on the car's depreciation rate. Other factors are also considered, but personally, the most I have paid for a car is Ksh90,000," Kale explained.

The vehicle must go through an examination by the Kenya Bureau of Standards after paying the fees (KEBS). Here, it is put through tests to establish whether the car is safe to drive.

Safety belts, suspension, the state of the car's body, and engine components are all inspected. After paying Ksh24,000 for the test, one receives a Certificate of Roadworthiness.

Car owners visit the National Transport and Safety Authority (NTSA) to register their vehicles with copies of the certificate and the payment of duty in hand.

The price of Ksh17,500 pays for the preparation of a new logbook, transfer fees, and a particular alteration. One is then given a new license plate, such KDK, Kale said. Users can wear ex-GK plates for up to six months while they wait for new ones, but they must have documentation of transfer on them in case traffic police stop them.


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