Kenyans shied away from importing vehicles into the country in 2023, a reflection of the tough economic times that dominated 2023.
A report compiled by the Kenya Ports of Authority (KPA) revealed that only 70,275 vehicles were discharged at the port in the entire year. This was a 29 per cent decline from the figures reported in 2022.
Notably, 2023 imports were the lowest ever recorded in the period under review.
5-Year Numbers
According to the data, in 2019, Kenyans imported 123,826 vehicles. The number dropped to 101,220 in 2020 with the global pandemic being attributed as a major reason behind the dip.
In 2021, the figures rose to 126,416 as the economy began to pick up. However, in 2022, the number dropped to 99,239 before eventually dropping to 70,275 last year.
2023 in Numbers
According to the report, most of the vehicles imported into the country in 2023 were imported in July with 8,032 units brought into the country.
This was closely followed by March and November when 7,317 and 7,122 were imported into the country respectively.
The lowest numbers were recorded in February with only 3,016 units imported in that period.
The Why
The decline in vehicle imports has been attributed to the post-election economic dynamics which saw the government come up with new taxation policies.
Notably, in September, the taxman, lowered the depreciation year from 70 years to 65 years, which is used during the calculation of taxes involved in the imports. This meant that those importing vehicles would pay more.
On the other hand, owing to the depreciating Shilling. In 2023, the dollar averagely traded at Ksh140. Given that imports are done in dollars, Kenyans had to fork out more to buy the vehicles of their choice.
All these factors contributed to the rise in vehicle prices leading to a notable change in preference.
“What we see happening is that people are changing their preferences because of higher prices. Some people who would have preferred to buy a Prado, for example, may decide to import a Nissan X-Trail.
"For importers, if you are bringing in 10 Harriers, you may cut it to seven because of the high costs," the Kenya Auto Bazaar Association secretary general, Charles Munyori stated in December 2023.
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