The National Transport and Safety Authority (NTSA) recorded a significant decline in the number of newly registered vehicles between July and August this year, pointing to a tough economic environment.
The Kenya National Bureau of Statistics (KNBS), in its Leading Economic Indicators report published on Tuesday, November 19, revealed that NTSA only registered 9,888 vehicles in August compared to 13,499 in July.
According to KNBS, the statistics were based on the type and body of the vehicles. Saloon cars saw the highest drop in registration, followed by station wagons and pickups, respectively.
Other vehicle types that also recorded a decline in registration include minibuses, lorries, and buses. However, NTSA registered more three-wheelers, vans, and wheeled tractors in August compared to July.
Overall, January emerged as the month with the highest number of registered vehicles at 19,711, with February, March, and July also recording a notable growth in the number of registered vehicles at 18,509, 15,984, and 13,499, respectively.
Additionally, the number of newly registered motorcycles also dropped considerably from 6,060 units to 4,292 units between July and August this year.
NTSA registered more motorcycles in January and February this year, with the Authority registering the lowest number of motorcycles in April and August.
The registration dipped as Kenyans cut purchases of new vehicles because of the surge in the cost of borrowing and the government's decision to impose stringent fiscal policies.
This comes amidst concerns by car dealers who have lamented a move by the government to increase taxes on imported vehicles, making it hard for buyers to afford their preferred vehicles.
In 2023, the East African Community (EAC) approved an application by Kenya that sought to raise the duty on motor vehicles under the common external tariff from 25 per cent to 35 per cent.
The decision to hike the road maintenance and fuel levy from Ksh18 to Ksh25 per litre was also a contributing factor, with some Kenyans expressing fears that the increase in the fuel levy could result in a corresponding increase in fuel prices.
Amidst the concerns, used cars remain the most purchased vehicle category in the country, with an average annual purchase of 130,000 units at a collective cost of Ksh60 billion.
