Newly registered road motor vehicles and motorcycle units in Kenya reported a decline for the third consecutive year with commercial vehicles segment booking the largest drop in 2024, official data shows.
A report by the Kenya National Bureau of Standard (KNBS) indicates that the number of newly registered units declined by 14.9pc to 166,514 last year compared to 195,656 a year earlier.
The 2025 Economy Survey indicates that during the period, newly registered wheeled tractors declined dropped by 67.5pc to 667 from 2,054 while trailers followed a similar trend, declining by 66.7pc to 2,123 from 6,368.
During the period, newly registered lorries/trucks declined by 60pc from 13,635 in 2023 to 5,456 last year while that of buses and coaches, saloon cars, and minibuses declined by 53.5pc, 15.9, and 8.7pc, respectively, in 2024.
Notably new registration was reported in the station wagons category which grew by 4pc from 61,711 in 2023 to 64,204 in 2024.
According to KNBS, the total number of newly registered motor and autocycles, and three wheelers declined by 4.7pc from 76,451 in 2023 to 72,868 in 2024.
Industry players attribute the decline to weak purchasing power during the year under review occasioned by factors such as foreign exchange devaluation which saw a hike in prices of units and high inflation.
“General economic and inflationary pressure have eroded purchasing power thus reducing demand for bikes,” said George Rubiri, General Manager, Car & General Trading.
The number of newly registered three wheelers also dropped by 29.4pc from 5,760 in 2023 to 4,064 in 2024, noted the bureau.
Limited access to finance during the year also dragged sales
“Microfinance have shied off due to inability to repay loans that has led to repossessions,” he noted.
Nonetheless, road transport continues to be key driver of growth in transportation and storage sector which grew by 6.4pc last year to an estimated Ksh 3.5 trillion.
“Road transport continued to generate the highest value of output in the sector at 75.1pc in 2024 compared with 76pc in 2023,” said KNBS.
While this year’s growth is projected at 5.3pc, Rubiri says units sales are unlikely to pick up in the near future.
To support recovery of the sector, the industry is eyeing supportive tax measures to stimulate growth in the automotive sector.
“There is need to improve the economic environment in Kenya – reduce/remove/ lower taxes so that the business environment can allow business thrive” he stated.
