Rich Kenyans no longer purchase high-end vehicles as they used to in the previous years.
Information from the Kenya Motor Industry Association revealed that the sale of luxury vehicles like Range Rovers, Porsches and Jaguars fell from 198 in 2018 to 112 in 2019.
The reduction in demand for high-end cars was linked to scrutiny from state agencies like the Kenya Revenue Authority (KRA) and disruptions in the supply chain.
Dealers in motor vehicles divulged that increased government scrutiny on luxury spending and huge financial transactions discouraged buyers from purchasing top-end vehicles.
A dealer disclosed to Nairobi News on condition of anonymity that tax authorities were on the lookout for big spenders whose returns were not consistent with their lifestyles.
"Instances, where one would pay cash when buying a car, are no longer there," the dealer affirmed. This is after KRA with the help of DCI nabbed wealthy Kenyans who evaded tax remittance after spending on high-end vehicles.
The report also revealed that state authorities use motor vehicle registration numbers to spot wealthy individuals.
This came as KRA sought to raise more revenue from Kenyans leading a flashy life, implying that they have a higher income compared to the taxes remitted.
Nairobi News reported that a reduction in the number of luxurious vehicles purchased dipped by 6.5 percent in the overall new-vehicle market.
In the report by KMI, it was revealed that well-to-do Kenyans cut orders of high-end vehicles by 43 percent from January to September 2019. This led to a sharp decline in the unit sales of the new vehicles.
