In July, Kenya experienced a significant decline in new motor vehicle sales, continuing a trend of slowdown despite lower interest rates and a stable exchange rate that typically facilitate asset financing for buyers.
During this month, dealers recorded sales of 1,677 vehicles, which is a decrease of 235 units compared to the 1,912 sold in June, reflecting a 12.3% drop month-on-month.
This decline occurred even as commercial bank lending rates slightly decreased and the Central Bank of Kenya (CBK) held its benchmark interest rate steady at 8.75%, conditions that industry experts believe should enhance access to vehicle financing.
According to data from the Kenya Motor Industry Association (KMIA), the industry sold a total of 9,757 vehicles from January to July 2026, with Isuzu East Africa leading the market. Isuzu achieved sales of 4,724 vehicles in the first seven months, securing a 48.4% share of the total market and remaining the top seller in July with 734 units sold.
Toyota followed as the second-largest seller during the January-July period, moving 1,977 units, while Sinotruk, Tata, and Mitsubishi sold 995, 470, and 349 units respectively. In July alone, Toyota sold 358 vehicles, Sinotruk 230 units, Tata 80 units, and Mitsubishi 52 units.
The July sales comprised 1,644 vehicles sold domestically and 33 units exported. Cumulatively, local sales reached 9,371 units, while exports accounted for 386 vehicles. KMIA noted that the industry’s performance benefitted from a stable exchange rate and the current monetary policy environment, which have supported asset financing for customers.
“The Kenyan automotive industry recorded 1,677 units sold in July 2026, contributing to a Year-to-Date (YTD) total of 9,757 units from January to July 2026,” KMIA highlighted in its report.
The industry has seen considerable fluctuations in monthly sales throughout the year, starting with 1,120 units in January, which rose to 1,166 in February, and 1,373 in March. Sales then dipped to 1,143 in April, climbed back to 1,366 in May, peaked at 1,912 in June, and ultimately fell in July.
This latest downturn indicates that lower financing costs alone are insufficient to maintain the robust momentum observed in June. CBK data reveals that the average commercial bank lending rate slightly decreased to 14.39% in July from 14.4% in June, while the benchmark CBR has remained unchanged at 8.75% since February, including after the Monetary Policy Committee’s meeting on August 11.
