/ 25 May 2001

KENYAN MOTOR INDUSTRY THREATENED

A KENYAN minister has predicted the imminent collapse of the country’s motor industry due to the influx of cheap imports. Labour Minister, Joseph Ngutu made the predictions at the 13th International Confederation of Free Trade Unions (ICFTU) conference at Mbagathi near Nairobi on Thursday. He said the flooding of the local market with cheap cars, mostly from the Middle East and Far East countries, had led to a huge decline in sales turnover virtually driving the domestic vehicle assembly plants on the brink of collapse. Ngutu is unhappy that the country’s economy had been subjected to “severe waves of external shocks owing to liberalisation” particularly in the automobile, sugar and textile sectors.