This archive report was first published on 18 October 2019.
Kenya's luxury car market has taken a hit, with sales plummeting by 43% in the nine months to September. According to data from the Kenya Motor Industry (KMI), unit sales of high-end brands like Porsche, Range Rover, and Jaguar fell to around 112 in the review period, compared to 198 the previous year.
The increased government scrutiny of luxury spending and large financial transactions has been a major factor in the reduced demand for high-end vehicles, which can cost up to Sh20 million. Car dealers claim that this scrutiny has discouraged buyers of top-end cars, making it harder for them to do business.
Agencies like the Kenya Revenue Authority (KRA) have been working with Interpol to track down vehicles stolen from the UK and individuals who are driving high-end vehicles like BMW, Mercedes, Porsche, and Land Rover without paying taxes. This has led to a sharp decline in the unit sales of new vehicles generally.
Specifically, unit sales of Porsche dropped to 22 units, or 46.3%, in the review period from 41 a year earlier, while those of Bentley declined to three from four. Global stockouts of several luxury car models have also contributed to the decline, with Porsches and Bentleys being out of stock for four months.
