Car dealers in Mombasa have raised concerns over a worsening business environment, citing high taxation, insecurity, and global geopolitical tensions as key factors hurting sales.
The dealers said the situation has been further exacerbated by the ongoing Middle East conflict, which they noted is affecting customers’ purchasing power, particularly for high-end imported vehicles.
“The question is how both national and county governments can empower businesses so that our clients can afford to buy both high-end and low-end cars,” said Jackson Tevera, a dealer at Roki Motors.
Tevera spoke during the opening of a new Roki Motors yard in Ganjoni, bringing the company’s total outlets to seven.
He noted that dealers in Mombasa previously sold up to 5,000 units monthly, but sales have been declining, with fears the Iran conflict could worsen the situation.
Some customers who have already placed orders are worried about delays in shipment, raising concerns about servicing loans before receiving their vehicles.
“We need both levels of government to engage us in finding short- and long-term solutions,” Tevera said.
Ken Sassy, another dealer, urged authorities to improve security, saying vehicles are frequently vandalised by street urchins.
“Most of our cars are broken into and parts stolen by street boys,” he said.
In response, county officials said they have launched a programme targeting street families and vulnerable youth to address both humanitarian and security concerns.
County transport executive Dan Manyala said the initiative includes night patrols and increased security presence, especially within the CBD.
“We are seeing more people sleeping on the streets and children running after vehicles. This has become a serious security concern,” he said.
Dealers also decried high taxation, noting that permit fees in Mombasa are significantly higher than in Nairobi.
Sassy said dealers with more than 10 cars pay up to Sh165,000 in licence fees, compared to about Sh50,000 in Nairobi.
“There should be a meeting with the county to review these charges,” he said.
The dealers, who number more than 40 in Mombasa, said they contribute significantly to the local economy through taxes and employment.
Tevera noted that the sector employs thousands of youth, helping reduce crime and boost economic activity.
“We contribute to local revenue and help reduce social vices by keeping young people employed,” he said.
James Macharia, another dealer, raised concerns over the high cost of signage, saying businesses are charged Sh5,500 per letter for 3D signage.
“This means if your business name is long, you pay heavily. A minimum signage costs about Sh30,000,” he said, calling for a reduction to encourage more installations.
Dealers also expressed concern over new regulations on imported used vehicles, which have tightened the age limit to eight years based on the first registration date.
Under the rules, only vehicles first registered in 2019 or later are now allowed into the country, with older units being rejected at the port.
The government is also planning to gradually reduce the age limit to zero by 2030 in a bid to promote local assembly.
However, dealers warned that such measures could push them out of business and lead to job losses.
“We need consultations before such policies are implemented. We should be given time to clear existing stock and orders,” Tevera said.
