Kenya Shilling Surge Leads to Lower Prices for Popular Car Models, See New Prices

• Kenya Auto Bazaar Association secretary-general Charles Munyori confirmed the prices of second-hand vehicles had declined between January and June
• A used 2017 Subaru Outback now retails at KSh 2.5 million, down from KSh 3 million, while the cost of a Nissan Note dropped from KSh 1 million to KSh 850,000
• The Mercedes-Benz C200 car that was sold for KSh 3.5 million in January is now KSh 500,000 cheaper at KSh 3 million

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

The Kenyan shilling has continued to strengthen against the United States (US) dollar and other world currencies.

A man in the driver's seat. The cost of the Nissan Note and other models had come down. Photo: People Images. Source: Getty Images

According to the official Central Bank of Kenya (CBK) rate, the shilling exchanged at 129.14 against the US dollar on Thursday, June 27.

How strong shilling cuts import costs

FX Pesa lead market analyst Rufas Kamau explained that a strong shilling makes imports cheaper, saving money on essential goods and services.

Kamau noted the overall savings from reduced import costs outweigh the losses from lower export revenues.

"The strengthening of the shilling against the US dollar and other foreign currencies has a net benefit for the country. Being a net importer, we save more money with a strong shilling compared to the value we lose through lower exports," Kamau told TUKO.co.ke.

How strong shilling impacted car import costs

The prices of popular car models reduced by double-digits between January and June, driven by a strong local currency.

Kenya Auto Bazaar Association secretary-general Charles Munyori confirmed the prices of second-hand vehicles had dropped during the period under review.

"We have seen price drops as a result of how the shilling has gained against the US dollar," Munyori told Daily Nation.

What are the new car prices in Kenya?

The cost of the 2017 Landcruiser Prado TX has declined from KSh 5.3 million to KSh 4.5 million, a 17.7% drop.

A used 2017 Subaru Outback now retails at KSh 2.5 million, down from KSh 3 million. At the same time, the cost of a Nissan Note dropped from KSh 1 million to KSh 850,000.

A Mercedes-Benz C200 car that was sold for KSh 3.5 million in January is now KSh 500,000 cheaper at KSh 3 million.

Meanwhile, a Nissan X-Trail goes for KSh 2 million, down from KSh 2.3 million.

The falling prices offer hope to car dealers who faced low sales last year.

Which vehicle imports did gov't restrict?

The Kenya Bureau of Standards (KEBS) released a list of vehicles that cannot be imported into Kenya.

KEBS noted that the country will not allow the importation of used passenger minibuses, midibuses, large buses, single-articulated buses, bi-articulated buses, and double-decker buses.

The standards body stated that imports of used rigid trucks with gross vehicle mass (GVM) equal to or greater than 3.5 tonnes and up to 30 tonnes will not be permitted.

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