Kenya. Vehicle market lost 23.6% in Q1

Kenyan Vehicles Sales

Kenyan Vehicles Sales in Q1 were hit by a large drop, as the Covid-19 pandemic worsened an already weak market trend. Indeed, restrictive measures imposed in the Country led new vehicle sales down 23.6%, with 1.401 units sold.

It was just yesterday

Following a quite positive period, ended with the all time record hit in the 2015 with 19.549 vehicles sold, Kenyan vehicles market was hit by the economic crisis and started falling down, losing in two years over 40% of volume., with 2017  total vehicles (including HCVs) at 10.831 (-19.8%).

In 2018 the mood changed and the market recovered, sustained by private consumption and the market score a recovery above expectations. Indeed, according to data released by the Kenyan Motor Industry Association, in the market grown, gaining 31.2% from 2017, with registrations at 14.251.

In 2019 despite a very good start, with the Q1 ended up in double-digit, the market has progressively lost steam ending the Q4 with a sharp decline. Full-year sales have been 13.130, down 7.9%. While HCVs segment was steady, the car passengers dropped down in double-digits.

In the first two months of 2020, the market was reporting a weak trend. Indeed, Year to Date February sales were at 1.187 (-3.4%).

A new Era has arrived

Said this, a new era started in March for the entire World, due to the Coronavirus outbreak.

The COVID-19 pandemic reached Kenya in March with the initial cases reported in the capital city Nairobi and in the coastal area Mombasa county. In order to slow down the spread of the virus, on March 15 President Uhuru Kenyatta imposed several restrictive measures, such as travel limitations, closure of schools and bans for congressional meeting.

As a result, new vehicle sales reported a severe drop in Q1, with sales at 1.401 (-23.6%).