Average car price in Kenya jumps 72pc, report shows

The average price of a car in Kenya has increased by 72 percent over the past two years to Sh1.37 million, highlighting the rising cost of vehicle ownership, according to a new report by online marketplace Jiji.

The report shows that the average listing price of vehicles rose from Sh797,000 in 2024 to Sh1.37 million in 2026, largely driven by higher import costs and changes in vehicle taxation.

The sharp increase follows the implementation of the Kenya Revenue Authority’s (KRA) revised Current Retail Selling Price (CRSP) schedule, which is used to determine the customs value of imported used vehicles. The revised valuation has raised the cost of importing many popular vehicle models, contributing to higher market prices.

For instance, the report notes that the price of a Toyota Vitz (1300cc), which previously sold for about Sh1.3 million, has increased to approximately Sh1.5 million.

Despite the rising prices, Jiji said second-hand vehicles continue to offer buyers a more affordable alternative compared to purchasing new vehicles.

“Against this backdrop, pre-owned vehicles remain an attractive option for many buyers, offering access to a wider range of models at different price points,” the company said in the report.

The findings also show that the median asking price for locally used vehicles has exceeded Sh1 million for the first time, marking a new pricing benchmark in Kenya’s automotive market.

The report further indicates that foreign-used vehicles remain significantly more expensive than locally used cars. Imported second-hand vehicles have an average listing price of about Sh4.5 million, compared to approximately Sh1.5 million for locally used vehicles, making imported models nearly three times more expensive on average.

Across all vehicle listings on the platform, the average asking price stands at about Sh2.5 million, reflecting the broad range of vehicles available in the Kenyan market.

The rising cost of vehicles comes at a time when many Kenyans are grappling with higher living expenses, making affordability a key consideration for prospective car buyers. Industry players say the higher import costs, combined with tax changes and exchange rate pressures, continue to influence vehicle prices across the market.