Published on 22/11/2024
Vehicle imports in Kenya have dropped by 15% as economic hardships tighten their grip on citizens.
National Transport and Safety Authority (NTSA) data reveals only 62,533 units were imported from January to August 2024, compared to 73,708 during the same period in 2023. The decline highlights shrinking purchasing power amid soaring inflation and high taxes. Dealers are feeling the pinch, with showrooms struggling to move stock. Many Kenyans now prioritize basic needs over luxury or convenience.
The decline in vehicle imports comes at a time when Kenyans are dealing with the high cost of living occasioned by increased taxes amid diminishing pay slips.
At the same time, the number of motorcycles imported in 2024 increased marginally by 7.7 per cent; rising from 45,610 units in 2023 to 49,132 in 2024.
According to the report, Kenyans imported 3,500 saloon units in 2024, an increase from 3,489 units in 2023.
Stations wagons, which are preferred for their practicality and fuel economy. registered a hike with 41,024 units imported in 2024, compared with 34,499 units last year.
Minibuses and pickups registered a decline in registrations over the period, dropping by 3.3 per cent and 58 per cent respectively.
Globally, vehicle prices have largely stabilized owing to macroeconomic factors such as supply chain disruptions.
Despite the stabilization, prices remain relatively high.
The Kenya Kwanza administration has projected the country to exhibit positive economic growth in the coming months occasioned by its focus in the agriculture and manufacturing sector.
The government has drafted a National Automotive Policy that seeks to boost the local assembling industry and discourage the importation of second-hand vehicles.
Currently, Kenyans prefer to import an average of 6,000 to 8,000 second-hand units monthly.
