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Kenya’s new car market remains feeble after tame July sales
Kenyan automakers reported a decline in full-year 2024 sales, with total aggregate vehicle sales dropping by 4% to 11,352 units, compared to 11,769 units a year earlier, despite a late-year recovery.
By Steve UMIDHA
New vehicle sales in Kenya grew by just 2 percent in seven months to July 2025, compared to a similar period last year, hit by a sluggish economy, high cost of living, weak revenue generation, and declining private sector investment, according to the industry’s umbrella body.
The Kenya Motor Industry Association (KMIA) data shows that car dealers have sold a total of 7,521 new car units between January and July this year, which is just 137 more units than they managed at the same stage in 2024.
Vehicle inventory levels have been plummeting, but incentives were expected to increase this year, even though there’s growing uncertainty surrounding a shaky economy, interest rates, and a wobbly regime riddled with recurrent cabinet reorganizations, which is said to hurt the effectiveness of the Government.
The William Ruto–led regime still faces numerous shocks, including a severe liquidity crunch and inflationary pressures in 2024, climate change shocks, subdued business sentiment following the mid-2024 protests, and reduced public spending amid ongoing fiscal consolidation efforts.
Unless growth translates more efficiently to higher incomes for the middle-income earners, the auto sector, like many others, is unlikely to peak to the levels seen in 2015 when the industry recorded its best performance yet.