Cars imported into the country dropped by three percent to 63,990 units in the first quarter to March 2023, as Kenyans battled dollar-driven price increases due to a weakening shilling.
Despite a drop in the units, the value of cars increased by Sh700 million on costlier imports.
Official data from the Kenya National Bureau of Statistics (KNBS) shows that 63,990 units were imported between January to March compared to 65,801 units in a similar quarter last year even as the value grew by four percent to Sh19.08 billion from Sh18.3 billion.
The drop came at a time the shilling plunged to 127.08 units to the dollar in March from 123.1 in December last year, reflecting a drop of 3.2 percent and setting the stage for increased costs of the imports.
The rise in value signals the pricey units that have hit even low-end second-hand cars whose demand had been growing over the years notably for the ride-hailing services, hitting demand as potential buyers grapple with depressed spending power.
Dealers hold that the car-selling business is struggling with depressed orders and sales which in turn affect importation given the popularity of second-hand cars in Kenya.
“Orders have significantly gone down and shipping is now a problem because ships carrying vehicles are taking longer time to fill and some are opting for connecting destinations in order to fill slots,” Antony Aleri, an executive at CarMax East Africa said.
