In a significant policy reversal, President Donald Trump's administration on Wednesday announced it will roll back tougher fuel-economy standards set by his predecessor, a decision with potential consequences for the global auto industry and Kenyan consumers.

The move dismantles the Corporate Average Fuel Economy (CAFE) standards, which were pushing manufacturers toward greater efficiency. This policy shift in one of the world's largest auto markets could influence the design of vehicles globally, potentially slowing the push for more fuel-efficient cars and impacting long-term running costs for drivers in import-dependent nations like Kenya.

Joined by executives from Ford, General Motors, and Stellantis, President Trump argued the reversal was necessary to lower vehicle prices. The White House claimed the previous rules would have added nearly $1,000 (approx. KES 129,300) to the cost of a new car and that the rollback would save American families $109 billion over five years.

How This Hits Home in Kenya

While the decision was made thousands of miles away, its effects could be felt directly at the petrol pump in Nairobi. Kenya's car market is dominated by used vehicles imported primarily from Japan. Global manufacturing trends, heavily influenced by US regulations, often dictate the specifications of vehicles produced for all markets.

A relaxation of US standards could lead global automakers to slow down investment in hyper-efficient engines. For Kenyans, this presents a difficult trade-off:

• A potential short-term gain if the purchase price of imported second-hand cars decreases slightly.
• A likely long-term pain in the form of higher fuel consumption, a critical factor in a country where fuel prices are a major component of the cost of living.

This comes as Kenyans already face high costs for second-hand vehicles due to import duties and a depreciating shilling, with popular models seeing significant price increases in the past year.

A Global Divide on Emissions

The Trump administration's policy breaks sharply with the direction of other major economic blocs like the European Union, which are mandating stricter emissions controls and a faster transition to electric vehicles. The previous US standards, finalized in June 2024, aimed for a fleet-wide average of approximately 50.4 miles per gallon (about 21.4 km/litre) by 2031. The new proposal lowers that target to around 34.5 miles per gallon (about 14.7 km/litre).

Critics of the rollback argue it will lead to increased fuel consumption and greenhouse gas emissions. Dan Becker of the Center for Biological Diversity noted the move was a significant blow to efforts to combat global warming and save consumers money at the pump.

As the global automotive industry navigates these conflicting signals, the Kenyan consumer is left to watch, wondering whether the dream of more affordable motoring will come at the cost of a bigger bill at the petrol station.