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New vehicle sales drop to 11-year low

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 22 May 2020.

Kenya's new vehicle sales have hit an 11-year low, with the COVID-19 pandemic taking a devastating toll on the industry.

According to data from the Kenya Motor Industry Association (KMI), formal dealers sold a total of 594 units in April 2020, down 47.2% from 1,127 units in the same month the previous year.

The slump in sales was enough to pull the industry's performance in the first four months of the year down 16% to 3,292 units, compared to 3,923 units in the same period the previous year.

Before the pandemic, April sales had ranged between lows of 808 units and highs of 1,442 units since 2009.

Major brands such as Isuzu, Toyota, and Mitsubishi suffered a reduction in orders of up to 61.5%, while luxury brands like Bentley and Porsche reported no sales in April.

Isuzu East Africa CEO Rita Kavashe told the Business Daily that the formal dealers were bracing themselves for a sales slump of up to 30% this year.

Unit sales of Isuzu commercial vehicles fell by the largest margin of 61.5% to 179 in April, compared to 466 in the same month the previous year.

The performance reflects the impact of the general business disruption brought by the pandemic, as well as travel restrictions that have specifically hurt the transport sector.

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