Coordinate EAC partner state action and align the national incentive regime with the EAC Assembly and Manufacturing Regulations 2025

Many transporters register trucks in Kenya because Uganda's import duty is 15% against Kenya's zero rate. The duty was imposed to promote truck assembly in Uganda but is causing loss of revenue in related areas as dues accrue to Kenya. An additional 18% VAT and 15% withholding tax, not reclaimable on imports, further discourages investment in newer, more efficient vehicles and equipment, raising cost per unit of freight and reducing competitiveness.

The East African Community Assembly and Manufacturing of Products Regulations 2025 promote local content in vehicle assembly and manufacturing across partner states. Published 1 July 2025, effective 1 July 2026, with initial focus on the automotive sector including e-mobility. The regulations establish harmonised definitions and minimum requirements for motor vehicles, motorcycles, trailers and components, mandate registration of assemblers and manufacturers, and promote locally produced parts through duty remission on complete knock-down and semi knock-down kits.