Why are vehicles in Kenya very expensive?
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Philip
Kenya imports it’s vehicles from European and or Asian countries, either as fully assembled or as complete knock down kits for assembly. Kenya does not manufacture any vehicles.
New unused vehicles are expensive, as they are subject to import duty, freight insurance and other charges.. Used cars upto 8 years old are allowed.. The general rule of thumb is the final cost of importation equals the overseas sale price.. Examples. If you bought a used car in Japan for ksh 1 million, the cost of freight, duty and other charges will equal to another 1 million times Kenya shillings..So yes, depending on year of manufacturer, cars are expensive.. But they are available.. You can get yourself a good used car for about a 20,000 dollars. That’s ksh 2 million..
Josephine
Its because the government is so corrupt that it taxes imports of vehicles punitively(almost 60%) so as to “spur” local assembly of vehicles.But in real sense,this is done to safeguard the interests of the political class and the wealthy oligarchy because most of them are the majority shareholders in the local motor vehicle assembly franchises.In real sense,Kenya is being fleeced by cartels.