Kenyan transport and auto industry

The Kenya automotive industry has come a long way and has seen tremendous growth in the last couple of years, but it’s small compared to well to other well established automotive industries in other countries, at the moment Kenya doesn’t produce any cars. Most of the cars on the roads are imported used cars from Japan. Though there are dealers for brand new cars in the market, very few people buy new cars. The most popular car brand in Kenya is Toyota but there are other well-known brands as well like, Nissan, Honda and Subaru.
Overview
Lack of technology and resources is the main reason that Kenya doesn’t produce its own car and has to rely on overseas market, another factor would be the market, and many people still live below the poverty line and are unemployed so most of the population is not able to afford cars. Most companies don’t focus on the African market and don’t give much focus on it, sure there are few cars assembled and the number is insignificant compared to their main markets.
The total contribution of Auto industry to GDP in 2013 was 1.9% which is likely to increase up to 3% in the next 4 years. Most vehicles use petrol for fuel and you’ll find it in every petrol station.
The Ministry of Transport and Infrastructure in Kenya, has been working to improve and expand the roads, this means there will be more vehicles on the roads. Also, the government is planning to eliminate matatu transport and introduce buses, to reduce congestion and traffic in Nairobi and other busy towns.
Since 1964 to 2014, the journey of auto industry in Kenya has not been smooth, tough and sometime a little smooth. In the last ten years car importations have increased by almost double. This is attributed to easy car loans, improved standard of living and affordable cars overseas.
Investment
The Kenya car industry has invested over Kshs 28 billion in the last three to five years to meet growing demand. The industry has provided employment to drivers and car dealerships not to forget the boda boda (motorbike transportation). These number are expected to double in the few coming years.
Though not the top paying indirect tax sector in the country, the Kenyan auto industry is expected to grow and help grow the economy. Most people are still not able to afford cars, in fact a very small part of the population owns cars, and to most cars are seen as a luxury but not a necessity. With improved governance and work towards the 2030 vision, many people are expected to be able to afford cars in the few coming years. It will be possible for you people in their 20’s to afford a car and not just older adults.
There has also been a recent interest towards hybrid and electric cars among a few elite Kenyans, however the unavailability of buyers remains a problem.

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