Kenya’s new motor vehicle sales fell sharply in July, extending a slowdown in the automotive market despite easing lending rates and a relatively stable exchange rate that have supported vehicle financing.
Dealers sold 1,677 vehicles in July, down from 1,912 units in June, representing a 12.3 percent month-on-month decline.
The decline came despite a marginal easing in commercial bank lending rates and the Central Bank of Kenya (CBK) maintaining its benchmark Central Bank Rate (CBR) at 8.75 percent, conditions that industry players say have helped improve access to asset financing.
Data from the Kenya Motor Industry Association (KMIA) shows that dealers sold a total of 9,757 vehicles between January and July 2026, with Isuzu East Africa maintaining its dominant position in the market.
Isuzu sold 4,724 vehicles during the first seven months of the year, giving it a 48.4 percent share of the total market.
The manufacturer also remained the leading seller in July, moving 734 units during the month.
Toyota was the second-largest seller during the January-July period with 1,977 units, followed by Sinotruk with 995 units, Tata with 470 units and Mitsubishi with 349 units.
In July alone, Toyota sold 358 vehicles, while Sinotruk recorded 230 units. Tata sold 80 vehicles, while Mitsubishi moved 52 units.
Of the 1,677 vehicles sold in July, 1,644 were sold locally, while 33 units were exported.
On a cumulative basis, local sales stood at 9,371 vehicles, while exports accounted for 386 units.
Sales Remain Volatile
The automotive market has experienced significant fluctuations in monthly sales throughout 2026.
Sales stood at 1,120 units in January before increasing to 1,166 units in February and 1,373 units in March.
The market then weakened to 1,143 units in April before recovering to 1,366 units in May.
Sales surged to 1,912 units in June, marking the strongest monthly performance in the period, before falling sharply in July.
The latest decline suggests that improved financing conditions alone have not been sufficient to sustain the strong momentum recorded in June.
Financing Conditions
KMIA said the industry’s performance continued to be supported by a stable exchange rate and the prevailing monetary policy environment, which has helped facilitate asset financing for customers.
“The Kenyan automotive industry recorded 1,677 units sold in July 2026, bringing the calendar Year-to-Date (YTD) industry total to 9,757 units (January–July 2026),” KMIA said in its observations accompanying the industry data.
Data from the CBK shows that the average commercial bank lending rate eased marginally to 14.39 percent in July, from 14.4 percent in June.
The CBR has remained at 8.75 percent since February, including after the Monetary Policy Committee meeting held on August 11.
Despite the relatively favourable financing environment, the July decline points to continued pressure on demand for new vehicles, with businesses and individual buyers remaining cautious about major purchases.
The performance of the automotive sector is closely linked to economic activity, business investment and access to credit, making vehicle sales an important indicator of demand conditions in the wider economy.
With Isuzu continuing to command nearly half of the market, competition among other manufacturers is expected to remain intense as dealers seek to attract customers amid fluctuating monthly demand.
