Kenya’s new motor vehicle sales fell sharply in July, extending a slowdown despite lower interest rates and a stable exchange rate that have eased asset financing for buyers.
Dealers sold 1,677 vehicles during the month, 235 fewer than the 1,912 units sold in June, representing a 12.3 percent month-on-month decline.
The drop came even as commercial bank lending rates eased marginally and the Central Bank of Kenya (CBK) maintained its benchmark interest rate at 8.75 per cent, conditions that industry players say are supporting access to vehicle financing.
Data from the Kenya Motor Industry Association (KMIA) shows that the industry sold a total of 9,757 vehicles between January and July 2026, with Isuzu East Africa maintaining a 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 top seller in July, moving 734 units during the month.
Toyota was the second-largest seller over 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 sold 230 units. Tata recorded 80 units and Mitsubishi 52 units.
The July sales figure comprised 1,644 vehicles sold locally and 33 units exported. On a cumulative basis, local sales stood at 9,371 units, while exports accounted for 386 vehicles.
KMIA said the industry’s performance was being supported by a stable exchange rate and the prevailing monetary policy environment, which has helped 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.
The industry has experienced significant fluctuations in monthly sales this year. Sales stood at 1,120 units in January before rising to 1,166 in February and 1,373 in March. They then fell to 1,143 in April, recovered to 1,366 in May and surged to 1,912 in June before retreating in July.
The latest decline suggests that cheaper financing alone has not been enough to sustain the strong momentum recorded in June.
CBK data shows that the average commercial bank lending rate eased slightly to 14.39 per cent in July from 14.4 per cent in June.
The benchmark CBR has remained at 8.75 per cent since February, including after the Monetary Policy Committee’s August 11 meeting.
