Car imports between July and September 2023 recorded a massive drop, an indication of the tough times that Kenyans faced.
According to the International Trade Report released by Kenya National Bureau of Statistics (KNBS), units imported in the third quarter of 2023 dropped by 65 per cent in comparison with units brought into the country in the second quarter of the same year.
Per the report, 64,359 units were imported into the country between April and June.
However, in the succeeding months, only 22,271 units were brought into the country, a clear indication of decreased demand.
Notably, between January - March 2023, Kenyans imported 63,990 vehicles.
Kenya mainly imports second-hand vehicles from Japan. The United Kingdom and Thailand are also some of the key markets for Kenyan importers.
The decrease witnessed in Q3, 2023 resulted from the weakening of the Shilling and the increase in fuel prices.
In Q3 2023, the dollar exchange rate oscillated between Ksh140 and Ksh148. Owing to the depreciation of the Shilling, importation became more expensive, making Kenyans prioritise other expenditures.
On the other hand, the cost of maintaining cars also became expensive owing to the pump hike witnessed in the third quarter of 2023. This was the period when the 16 per cent VAT on fuel also came into effect.
Between July and August 2023, petrol retailed at Ksh194.68, diesel at Ksh179.67 and kerosene at Ksh169.48. Between August to September, the prices remained unchanged.
However, during the September review, the Energy and Petroleum Regulatory Authority (EPRA) increased the price of petrol by Ksh16.96 per litre while diesel increased by Ksh21.32 per litre.
EPRA attributed the sharp increase to importation costs and the exchange rate given that fuel products are imported in dollars.
"Super Petrol, Diesel & Kerosene will retail at Ksh211.64, Ksh200.99 and Ksh202.61 respectively in Nairobi effective midnight.
"The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020," EPRA announced then.
