The importation of pickups and vans overtook saloon cars in 2022, as documented in the 2023 Economic Survey Report released on Monday, May 8.
According to the Kenya National Bureau of Statistics (KNBS) report, Kenyans imported 10,901 units of vans and pickups, with only 6,350 saloon cars being imported.
Notably, saloon cars dominated car imports since 2020, when Kenyans imported 7,754 units compared to 6,065 pickups.
In 2021, 8,170 saloon cars were imported into the country compared to 5,986 pickups.
"There was a significant rise in newly registered panel vans and pick-ups from 5,986 units in 2021 to 10,901 units in 2022.
"The number of lorries/trucks, minibuses/matatus and trailers rose by 42.5, 10.3 and 8.5 per cent, respectively, over the review period," read the report in part.
Why the Change?
Generally, the importation of vehicles declined in 2022 owing to several factors, including the increase in car prices and the dominance of the dollar against other currencies. This worldwide trend began during the Russia-Ukraine conflict on February 24, 2022.
"Expenditure on imported road motor vehicles declined by 14.6 per cent from Ksh99.5 billion in 2021 to Ksh85 billion in 2022," read the report in part.
However, amidst the decline, motorists preferred to import pickups because they are more economically viable.
This is because most saloon cars in Kenya are mostly used for personal and family use, while pickups offer motorists opportunities to invest in the business.
The most common businesses where pickups are gaining predominance include the transportation of hardware and agricultural products.
On the other hand, the prices of saloon cars grew in 2022 - especially in Japan, making it hard for Kenyans to purchase them.
According to Statista, the average price of a saloon car in Japan in 2022 grew from Ksh1,560,000 to Ksh1,580,000.
With importation costs also increasing, the prices of cars also shot up, forcing buyers to shy away.
As an alternative, interested buyers opted for used second-hand vehicles, as revealed by Kenya Auto Bazaar Association (KABA) chairman John Kipchumbain in March 2022.
“Demand is very high because prices of second-generation vehicles have shot up. People are going for local units which are being sold by third, fourth owner," he stated then.
