Nairobi, June 14 -- The Treasury plans to effect an incentive policy that could see a reduction in costs of locally assembled vehicles targeting passenger cars.

Treasury Cabinet Secretary Ukur Yatani said the government is working on a framework to cut the cost of assembling personal cars in a bid to discourage imports.

"Whereas assembly of commercial vehicles has registered tremendous growth, the 28 passenger category of motor vehicles remains underdeveloped. This category is still dominated by imported used vehicles comprising over 70 percent of passenger vehicles, which is largely attributed to the high cost of assembly," he said when he presented his budget policy statement on Thursday.

"In this regard, the government is working on a...