Kenya new car sales plunge 15% in 2023 on new taxes, weaker currency

Isuzu Motors

01/03/2024 06:36

NAIROBI, March 1 (Reuters) - The number of new vehicles
sold in Kenya dropped 15% in 2023, data from an industry
association showed, as new taxes and a weaker currency curbed
demand.
    Although the East African nation's car market is dominated
by used imports from Japan, it has been attracting investments
from global car makers such as Volkswagen  VOWG_p.DE  in recent
years, buoyed by the government's attempts to boost local
assembly of vehicles.
    Individuals and businesses bought 11,370 units last year,
the Kenya Motor Industry Association said in data seen by
Reuters on Friday, down from 13,352 units sold in 2022.
    The sales were affected by drought locally in the first
quarter, which cut demand from farmers, and supply chain
disruptions internationally due to a global shortage of
semiconductors, said Isuzu East Africa, a leading car dealer.
    The business was then hit by political protests in the
second quarter, and new taxes that were introduced by the
government in July, Isuzu said.
    "High inflation and the depreciating shilling affected the
prices of products and increased production costs," the company
said. 

     

 (Reporting by Duncan Miriri; Editing by Rashmi Aich)
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