carsrequest 
2025 Car Market Trends in Kenya: What to Expect
As Kenya’s automotive industry moves through 2025, several key trends are reshaping the market. Whether you’re a buyer, dealer, or investor, understanding these changes can help you make better decisions.
1. Fewer New Car Sales
🚗 In 2024, new car sales in Kenya dropped by 2.74%, with only 11,059 units sold.
📉 High bank loan interest rates and reduced government purchases contributed to the decline.
🔮 This downward trend may continue in 2025 as tough economic conditions persist.
2. Used Car Market is Growing
🛻 The used car market in Kenya is booming.
💰 Valued at around USD 1.25 billion in 2025, it’s expected to grow to USD 1.39 billion by 2030.
🎯 Why? Used cars are affordable, the middle class is growing, and cities are expanding.
3. Demand for Affordable, Eco-Friendly Cars
🌱 More Kenyans want fuel-efficient and sustainable cars.
💡 Hybrid vehicles and smaller engines are gaining popularity.
📉 Budget-conscious buyers are avoiding fuel-hungry models.
4. High Taxes and Interest Rates Impact Sales
💸 The auto sector is under pressure from taxes and costly loans.
📊 In 2024, dealers sold 11,352 new vehicles—another dip in performance.
😟 This trend is likely to continue unless lending becomes more accessible.
5. Trade Uncertainty with AGOA
🌍 The African Growth and Opportunity Act (AGOA) could end in September 2025.
🚢 AGOA allows Kenya to export goods to the U.S. duty-free.
❗ If not renewed, the auto import-export business may face new costs and delays.
6. Car Washes Are Becoming Lifestyle Spots
🍽️ In cities like Nairobi, car washes now double as cafés or lounges.
🧼 Geco Café is a popular example—offering car cleaning, food, drinks, and live music.
🏙️ This trend shows how car-related businesses are adapting to modern lifestyles.
Final Thoughts
📌 In 2025, Kenya’s car market is changing fast.
- New car sales are slowing.
- Used cars are thriving.
- Buyers want affordable, fuel-saving vehicles.
- Business models are becoming more creative.
📈 To stay ahead, embrace these changes and explore smarter options.
