Political uncertainty in the country for the past few months has hit car dealers hard as most have been forced to sell stock at throw away prices.
Imports have dropped by 16 per cent in three months from June when the country was gearing up for the August election and later the fresh elections.
According to Kenya Auto Bazaar Association (Kaba) secretary general, Charles Munyori, Kenyans have been reluctant on investing in cars ‘due to political instability.’
”We have been forced to sell at throw away prices as people don’t want to spend due to political instability.”
The industry in general, Mr Munyori said is making losses. For instance, he said, a Mazda Demio that was previously going for Sh680,000 is now selling at Sh550,000 or Sh600,000, a Sh3.8 million Toyota Prado is now selling at Sh3.4 million.
He also pointed out that lenders are no longer willing to finance car loans especially those of salaried employees due to continued threats on jobs.
”No bank is willing to guarantee workers on the basis of their payslips as most employers are talking of layoffs.”
Read: GM East Africa and Toyota Kenya Are Fitting Old Engines on to Brand New Vehicles
The political stalemate between the Jubilee government and the opposition, NASA spilled over to economic uncertainty.
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