NAIROBI, April 25 (Xinhua) -- Kenya's second-hand motor vehicle imports are likely to decline in 2017 to hit 60,000 units down from 75,000 in 2016, the industry association said on Tuesday.
Kenya Auto Bazaar Association (KABA) Vice Chairman Mark Oburu told Xinhua in Nairobi that the reduction is due to slight weakening of the Kenyan shilling versus international currencies.
"We expect second hand imports to decline as consumer adopt a wait and see approach," Oburu said when E-commerce portal OLX launched a service to allow car buyers and sellers to transact safely and conveniently.
However, in the past decade, Kenya's second hand imports have witnessed a steady increase due to stable economic growth that has created demand for personal vehicles.
Oburu said that second hand vehicles account for 70 percent of all vehicles sold in the country.
"They are popular among consumers as they are affordable as compared to new vehicles," he added. According to KABA, second hand imports retail in Kenya for as little as 4,500 U.S. dollars.
The vice chairman noted that vehicles sales have been fuelled by the availability of loans for vehicles.
The lucrative vehicle industry has also lured global vehicles manufacturers to establish assembly plants in the country.
In the past one year, German manufacturer Volkswagen and French automaker Peugeot has commenced operations in Kenya. Enditem
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