A sharp drop in July purchases has slowed Kenya’s new vehicle market, with dealers selling 235 fewer units than the previous month despite slightly cheaper bank loans and a steady exchange rate.
The industry recorded 1,677 new vehicle sales in July, down from 1,912 units in June. The 12.3 per cent month-on-month decline came immediately after the market posted its highest monthly sales figure of the year.
Figures from the Kenya Motor Industry Association (KMIA) show that 9,757 vehicles had been sold between January and July 2026. Isuzu East Africa remained firmly ahead of its competitors, accounting for almost half of the total market.
Isuzu sold 4,724 vehicles during the seven-month period, giving it a 48.4 per cent share. It also led the July market after selling 734 units.
Toyota followed with 1,977 vehicles between January and July, while Sinotruk occupied third place with 995 units. Tata recorded 470 sales, followed by Mitsubishi with 349.
The July figures showed a similar order among the leading brands. Toyota sold 358 vehicles, Sinotruk moved 230 units, Tata recorded 80 and Mitsubishi sold 52.
Of the total July sales, 1,644 vehicles were sold within Kenya while 33 units were exported. For the first seven months of the year, domestic sales reached 9,371 vehicles, with exports accounting for 386 units.
KMIA said the market had benefited from a stable exchange rate and the monetary policy environment, which has helped customers obtain financing for vehicle purchases.
“The Kenyan automotive industry recorded 1,677 units sold in July 2026, bringing the calendar Year-to-Date (YTD) industry total to 9,757 units (January–July 2026),” KMIA said in its observations accompanying the industry data.
The market has moved up and down throughout the year, showing that sales have yet to settle into a steady trend.
Dealers sold 1,120 vehicles in January, with sales rising to 1,166 in February and 1,373 in March. The market then weakened to 1,143 units in April before improving to 1,366 in May.
June brought a major jump, with dealers recording 1,912 sales, but that gain was partly reversed in July.
The latest figures show that the strong June performance did not continue into the following month, even as financing conditions remained relatively favourable.
Central Bank of Kenya data shows that the average commercial bank lending rate declined marginally to 14.39 per cent in July from 14.4 per cent in June.
The Central Bank Rate (CBR), which influences borrowing conditions, has remained at 8.75 per cent since February. The rate was retained at the Monetary Policy Committee meeting held on August 11.
The July decline therefore came despite the modest improvement in borrowing costs, suggesting that the lower rates have not yet translated into sustained growth in vehicle purchases.