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New vehicle sales jump 25pc as Isuzu tightens grip on market
Analysis of the data compiled by the Kenya Motor Industry Association (KMI) shows that growth in showroom vehicle purchases in the review period was the fastest in four years
New vehicle sales rose by 25.05 percent in the first half of the year amid falling interest rates and a stable shilling and inflation rate, marking the first growth in three years.
Motor vehicle dealers and assemblers, including Isuzu East Africa, CFAO Mobility Kenya (formerly Toyota Kenya) and Simba Corp, sold 6,360 units compared with 5,086 units in the same period of last year.
Isuzu strengthened its leadership in the new vehicle market, extending its market share to 48.35 percent from 47.94 percent last year, while CFAO’s share fell slightly to 31.71 percent from 32.05 percent.
Analysis of the data compiled by the Kenya Motor Industry Association (KMI) shows that growth in showroom vehicle purchases in the review period was the fastest in four years.
The last time the industry experienced a higher growth rate was in the first half of 2021, when sales jumped 34.96 percent to reach 6,246 units.
Since 2022, new motor vehicle dealers have endured a torrid operating environment, with the weakening value of the shilling against the US dollar and shortages of the world's reserve currency being compounded by higher taxes in an economy battling runaway cost of living.
Companies also complained of accumulating pending bills owed to them by the government, which weakened their cash flow positions.
Sales have, however, started to rebound this year, partly due to falling cost of loans characterised by relative stability in foreign exchange markets and inflation.
"The stable forex and inflation rates are driving optimism in the market," Isuzu East Africa told the Business Daily in mid-April.
"The storm appears to be over because of the positive macroeconomic indicators, with promising signs of recovery and growth."
Market share
Isuzu recorded the largest growth in orders among the three major dealers and assemblers —alongside CFAO Mobility and Simba Corp— which control nearly 90 percent of the new vehicle market.
Isuzu —which sells pick-ups, buses, trucks and sport utility vehicles (SUVs)— sold 3,075 units in the six-month period ended June 2025, a 26.13 percent bump over 2,438 vehicles sold in a similar period a year earlier.
CFAO, which sells multiple brands such as Toyota, Mercedes, Volkswagen and Hino following the merger of Toyota Kenya and DT Dobie operations, grew sales by 23.74 percent to 2,017 vehicles.
Simba Corp, which holds franchises for Mitsubishi, Proton, Ashok Leyland and Mahindra, closed deals for 547 vehicles, marking a 4.79 percent rise on the 522 units sold in the same period the prior year.
However, Simba Corp lost market share, falling to 8.60 percent from 10.26 percent in the same period, highlighting the relatively higher sales gains by rivals.
Increased taxes
The Kenya Revenue Authority increased duty on shipping cars into the country from 25 percent to 35 percent from July 2023 after the East African Community (EAC) Council of Ministers approved Kenya’s application to levy a higher rate than the bloc's common external tariff (CET).
In addition to the standard 16 percent value-added tax (VAT), importing vehicles attracts an excise duty ranging from 25 percent to 35 percent, depending on the size of the engine.
Excise tax is charged on the sum of the landed cost of the car and import duty, while VAT is applied on the resultant value [the sum of landed cost, import tax and excise duty].
The administration of President William Ruto is seen extending incentive packages for the local automotive assembly in order to promote growth in the nascent electric vehicle market.
“Transitioning to electric mobility (e-mobility) remains a priority intervention of the government’s inclusive green growth and climate action plan aimed at reducing greenhouse gas emissions and air pollution, while at the same time meeting the mobility needs of consumers,” the Treasury wrote in the 2025 Budget Policy Statement in February.
“Electric vehicles and motorcycles are an important breakthrough toward bettering air quality and easing traffic in busy cities because of their quiet operation and lower running costs as compared to diesel buses.”
