Price surge by car model before and after tax

Car prices in Kenya have surged significantly following new tax measures, with buyers now paying substantially more for popular models.

Data shows that a Mazda Demio, previously priced at about Sh1.35 million, now costs around Sh1.7 million, reflecting an increase of roughly Sh460,000 in taxes.

Similarly, the price of a Nissan Note has risen from Sh1.1 million to Sh1.5 million, with tax adding about Sh400,000.

Entry-level vehicles have not been spared.

A Suzuki Alto, which previously ranged between Sh600,000 and Sh800,000, now averages about Sh1 million, with taxes contributing between Sh200,000 and Sh400,000.

Overall, total taxes on imported vehicles now range between 70 and 100 per cent of the car’s value.

The sharp increase in costs has coincided with a notable decline in vehicle imports.

Imports dropped from 126,415 units in 2021 to 70,275 units in 2023, representing a 44 per cent decrease, as higher prices dampen demand.