Prices Of Vitz, Mazda Demio And Other Vehicles Skyrocket As Import Duty Hits Buyers

• Kenyans seeking to buy cars would dig deeper into their pockets after the government increased the import duty from 25% to 35%
• The raising of import duty on cars came at a time when the cost of living was at an all-time high following the implementation of the Finance Act 2023
• Mazda Demio costs an estimated KSh 1.3 million, while the price of a Nissan note increased to KSh 1.2 million as taxes soared by KSh 32,549

Kenyan car buyers have been hit with a 35% import duty which has seen the prices of popular car brands skyrocket.

The East African Community (EAC) approved raising the import duty on motor vehicles from 25% to 35% under the common external tariff amid the depreciating shilling.

The East African reported that the review of the import duty paved the way for a double-digit increase in the cost of imported cars.

According to Business Daily, second-hand car costs have jumped by 14.69%, with dealers increasing prices by up to KSh 330,000 for some brands.

What are the prices of cars in Kenya?

The price of a Toyota Vitz manufactured in 2016 now costs KSh 32,070 more. The cost of a second-hand Vitz has increased to KSh 1.3 million.

At the same time, Mazda Demio costs an estimated KSh 1.3 million, while the price of a Nissan note increased to KSh 1.2 million as taxes soared by KSh 32,549.

A new Toyota VX model with an engine capacity of 4600cc is retailing at a whopping KSh 14 million after taxes were raised by KSh 259, 612.

On the other hand, the prices of the Toyota Harrier (2000cc) and Nissan X-Trail (2500cc) increased by KSh 107,059 and KSh 116,901, respectively.

The Kenya Auto Bazaar Association expects the sale of vehicles to decrease in the local market due to high taxes.

“What we see happening is that people will change their preferences because of higher prices. Some people who would have preferred to buy a Prado, for example, may decide to import a Nissan X-Trail, the lobby's secretary general Charles Munyoro said.

What is the KEBS vehicles importation order?

In July 2022, the Kenya Bureau of Standards (KEBS) released a list of vehicles that won't be allowed to be imported into Kenya.

The new importation rule seen by TUKO.co.ke was issued in line with the declaration of KS 1515: 2019 Kenya Standard Code of Practice for inspection of road vehicles as mandatory Kenya standard by the Cabinet Secretary for Industrialisation, Trade and Industry.

KEBs noted that all used passenger minibuses, midibuses, large buses, single articulated, bi-articulated buses, and double-decker buses should not be imported into the country.

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