The conflict between Ukraine and Russia has imposed various inconveniences in Kenya, including reduced imports. Both these countries are major exporters of different classifications of microchips. These countries are large-scaled exporters of palladium, which makes microchips. When it comes to the total supply, 45 percent is being contributed by Russia.
To combat this situation, Kenya is setting for cars to be imported locally and belonging to the third generation. The reason is that global production has decreased, and prices are on a continuous rise. Global production has decreased mainly because of the reduction of microchips. These are also named semi-conductors. Due to the less availability of microchips, automobile companies have reduced their production level. In addition to that, this condition is expected to continue in the upcoming half of the year, considering the ongoing Ukraine – Russia war. Many user car owners operating in Kenya and based in Singapore, Japan, are less willing to sell their cars at a rapid pace. The reason is that they are waiting for price rises. The demand for automobiles also took a spike between 50 and 80 percent during the pandemic when there was a lack of vessel availability. As a result, the standard monthly imports of vehicles have also declined from the average count of 5000 to 7000 to less than 3000.
Peter Otieno also shared certain details, the chairman of the Car Importers Association of Kenya (CIAK). For instance, Mazda Demio having a capacity of 1500 CC, carries a current reaching the Sh 1 million tag. At the moment, it ranges between Sh 700,000 and Sh 900,000. In addition to that, this rise has been from the Sh 500,000 and Sh 600,000 price range. The story of Toyota Premio is no different, and it runs between the Sh 1.6 and 2.5 million range varying with engine capacity. However, this rise has been noticed from Sh 1.2 million.
Similarly, the used Nissan X trail and Toyota Axio are standing at Sh 2 Million and Sh 1.4 million, respectively, from the initial prices of Sh 1.5 million and Sh 1 million. More importantly, the latest Nissan X trail models have a price range of Sh 4.4 million approximately. In addition to that, the Kenya Auto Bazaar Association (KABA) statement showed that the price of second-hand imported vehicles is expected to take a 30 percent price hike.
The local Pro Box stands at Sh 700,000, while the earlier price was Sh 400,000. Likewise, the imported one is standing at $1 million from a price of Sh 700,000. The KABA has around 2 to 3 thousand customers every Sunday. A major alternative for car buyers is approaching mechanics and getting left out revamped in such a situation.
