New luxury car orders in Kenya more than doubled in the quarter ended March 2025, a big comeback for the high-end market. Demand for models like Range Rover and Mercedes-Benz drove this surge, according to industry data.
Formal sales of new luxury cars—priced above Sh30 million—rose to 17 from 7 in the same period last year. The Kenya Motor Industry Association (KMI) attributes this 142.86 percent growth to improved macroeconomic conditions—stable shilling and lower borrowing costs.
Who’s Buying These Luxury Cars?
The luxury segment is still popular among wealthy families, corporate entities—often buying for their executives—and select government arms like the Judiciary. This niche market has always driven demand even in tough economic times.
Dealers Welcome the Turnaround
Leading dealers Inchcape Kenya and CFAO Motors Kenya were the big winners. The former has been struggling for a while now. The upturn marks a turnaround after two.The market saw total sales of 3, 292 units, up from 2, 430 in the same period last year. This growth was driven by commercial vehicles—trucks and buses.
Market leader Isuzu East Africa led the pack among the top three—CFAO Motors and Simba Corp who together account for nearly 90% of the market.
Isuzu’s numbers were impressive:
- Units sold: 1,648 (up 65.13% from 998)
- Market share: 49.97% from 44.75%
- Key drivers: Trucks and buses, 73.60% (1,213 units) of their total sales
Dealer Competition
CFAO Motors sold 959 units, up 27.02 percent from last year, but its market share dropped to 29.08 percent from 33.86 percent. Simba Corp sold 301 vehicles, up 18.04 percent from last year, but its market share also fell to 9.13 percent from 11.43 percent.
Taxation Still a Heavy Load for Importers
Importation costs are still biting car buyers. The Kenya Revenue Authority (KRA) in mid 2023 increased import duty on vehicles from 25 percent to 35 percent after the East African Community Council of Ministers approved.
Imported vehicles attract:
- Import duty: 25 to 35 percent
- VAT: 16 percent
- Excise tax is calculated on the sum of landed cost plus import duty, VAT is applied on the total value.
These taxes add up to make the final price of the vehicle especially in the luxury segment.
Outlook: Hopeful but Cautious
While the luxury car market had a good first quarter, growth will depend on broader economic trends, currency stability, interest rates and policy changes on importation costs. For now, the high end car market is shifting gears to recovery.