Kenyan new vehicle dealers blame tax hike for low sales

Kenyan new vehicle dealers blame tax hike for low sales

 

New vehicle sales in Kenya dropped 29.1 per cent in the first half of the year in what dealers attributed to increased taxes which made them more expensive and subdued demand.
Data from the Kenya Motor Industry Association shows that sales in the period stood at 7,154 units compared to 10,009 a year earlier.

 

 The sales decline has hit most dealers including General Motors East Africa (GMEA), Toyota Kenya and Simba Corporation.
The dealers claim that up to 10,000 direct and indirect jobs are at stake in the industry due to the depressed demand.
A series of taxes introduced in recent years have seen the price of new vehicles rise by up to $11.8000 per unit, which dealers say has seen customers scale down their purchases or opt for used imports that can be up to 50 per cent cheaper.