The current car prices have gone down with 20% following the drop in demand due to the prolonged political instability which majorly affected the Kenyan economy. According to Kenya Auto-Bazaar Association (Kaba) secretary general, Charles Munyori, second-hand dealers were struggling with the dormant stock forcing them to cut down the price.
Buyers have of late developed a wait and see attitude in a slowing economy where money circulation has gone down to new lows with most banks unwilling to finance salaried employees. The car importation had also gone down by 16% to 21, 584 within the past three months to September 2017 when Kenya was preparing for the general election which was followed by the repeat polls.
The political instability has made dealers sell at a throwaway price since people don’t want to spend. Bad politics translates to bad life. Some dealers who used to sale up to 100 units are now forced to sell 60 units only. A Toyota Belta which used to sell at Sh850, 000 is now selling at Sh700,000. A Mazda Demio used to go at Sh680, 000 is now selling at between Sh550, 000 and 600,000, while a Toyota Prado which was costing Sh3.8 million is now down to Sh3.4 million
The private sectors have withdrawn from the country due to political instability. Output has contracted for six consecutive months, according to the PMI, and the November 2017 drop was the sharpest since the series began, as output, new orders and employment contracted. Also, the Treasury has cut its 2017 growth forecast to five percent from six percent.