This archive report was first published on 16 October 2019.
On October 16, 2019, the Kenya Motor Industry Association (KMI) released data showing a 6.5 percent decline in new motor vehicle sales for the nine months ended September.
According to the data, companies including Isuzu East Africa and Toyota Kenya posted unit sales of 10,081 in the review period, compared to 10,793 a year earlier.
Isuzu East Africa recorded the highest sales growth of 14 percent, with orders of its namesake commercial vehicles rising to 3,913 from 3,430 units.
Isuzu's chief executive, Rita Kavashe, attributed the company's performance to special financing deals with banks.
“Our deals with lenders such as Co-op Bank have helped us drive sales,” Kavashe told the Business Daily in a recent interview.
Isuzu and other sellers of commercial vehicles are set to benefit from the recent government ban on imports of used trucks with load capacities of 3.5 tonnes and above.
Simba Corporation, whose franchises include Mitsubishi and Mahindra, saw its unit sales rise 2.9 percent to 1,565 compared to 1,520 a year earlier.
However, Simba's partner in the Renault joint venture, Salvador Caetano Group, terminated the Kenyan company's contract in February after they fell out over strategy.
Toyota Kenya was among the dealers to record lower sales in the nine months, with the local franchise holder moving 2,642 units compared to 3,030 the year before.
Dealers attributed the decline in sales to stricter lending standards adopted by banks since the introduction of lending rate controls in 2016.
