Sellers of used cars were forced to cut prices between February and March due to demand in an economy stumbling from the effects of the Covid-19 pandemic.
On Wednesday, a report by Trends and Insights for Africa(TIFA) in partnership with Cheki showed that many Kenyans lost their source income and were not able to service bank loans.
This was attributed to falling demand in an economy reeling from the effects of the COVID-19 pandemic which was majorly caused by the loss of incomes and inability of many households being unable to service bank loans.
“Used car imports in Kenya have been on a steady rise since the rise of infections in the country from early this year as many individuals opt for private means of travel in a bid to reduce the chances of being infected with the COVID 19 virus,” Resian Leteipan, Cheki Kenya CEO said.
“Sale of cars seized by banks could have potentially increased supply in the market, further putting downward pressure on prices,” Leteipan stated.
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The Kenya Used Vehicle Index Report noted that of the listed vehicles online marketplaces, cars manufactured in 2012 accounted for 43% of all listings followed by those manufactured in 2013 at 27% and 2011 at 6%.
It also emerged that first-time car buyers are opting for older models manufactured between 2011 and 2012.
