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Demand for cars down as Kenya poll nears

Saturday August 05 2017
cars

Imported cars at a yard in Mombasa. PHOTO | NMG

By MARYANNE GICOBI

Demand for new cars has declined as Kenyans await the outcome of the August 8 General Election.

Car dealers and those in the shipping and clearing business say sales have gone down.

Nairobi-based importer Njeru Phineas of Car Locus Ltd said he had stopped importing vehicles due to “the negative sentiment in the market.”

Mr Njeru who used to sell up to 15 units a month currently has only six for sale.

Vehicles are the third-largest import item in Kenya in value, after industrial machinery and petroleum products.

Shipping and clearing agent Johanes Mbogo said the number of containers docking at the port has decreased, but they expect it to pick up after elections.

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“We usually get up to 15 vessels every week docking at the port. Now they are just eight,” he said.

“Vessels carrying vehicles are normally two in a week, now we are getting one every two weeks.”

Each vessel carries 600 to 800 units.

Consequently, customers who had placed orders for cars have to wait longer.

“For the past three weeks now, I keep being told there is a delay by my dealer, reason being the vessel carrying new vehicles is yet to get enough units for it to ship back to Kenya,” said Eva Mukami, who is importing a car from Japan.

A survey done by the Kenya Association of Manufacturers revealed that about 57 per cent of Kenyan firms are pessimistic about the general business environment, citing uncertainty about elections.

Companies are taking their employees through safety and emergency response drills, informing them of election violence hotspots, and what they to do in the event of violence.

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