Number Of Newly Registered Cars Drops by 25,000 in One Year

Latest data from the Kenya National Bureau of Statistics (KNBS) released on Tuesday, May 6, revealed that the number of newly registered motor vehicles in the country declined by 21.4 percent in 2024.

The data, derived from a report titled Economic Survey 2025, revealed that the number of newly registered road motor vehicles dropped from 119,205 in 2023 to 93,646 in 2024, a difference of 25,559.

On the other hand, newly registered lorries/trucks declined by 60 per cent from 13,635 in 2023 to 5,456 in 2024, while trailers followed a similar trend, going down by 66.7 per cent to 2,123 in 2024.

Newly registered panel vans and pick-ups dropped by 54.6 per cent to 5,879 in 2024 while newly registered wheeled tractors, buses and coaches, saloon cars, and minibuses declined by 67.5, 53.5, 15.9, and 8.7 per cent, respectively, in 2024. 

“There was, however, a 4.0 per cent increase in the number of newly registered station wagons from 61,711 in 2023 to 64,204 in 2024,” stated KNBS in part.

The report further examined the total number of newly registered motor and autocycles, and three-wheelers, which declined by 4.7 per cent from 76,451 in 2023 to 72,868 in 2024. 

Furthermore, the number of newly registered three-wheelers dropped by 29.4 per cent from 5,760 in 2023 to 4,064 in 2024, and there was also a decline in the number of newly registered motor and autocycles, from 70,691 in 2023 to 68,804 in 2024. This trend has been worsening since 2020, when 246,705 motorcycles were imported to only 68,000 in 2024.

Overall, the total number of units registered declined by 14.9 per cent from 195,656 in 2023 to 166,514 in 2024. KNBS did not, however, expressly state the cause of the decline, but this is an indicator of a worsening economy in Kenya.

How Drop In New Motor Vehicles Hurts Kenya’s Economy

A decline in the number of newly registered motor vehicles is a red flag for broader economic trouble. 

Buying a new car—whether for personal use or for business—is a significant financial decision. When individuals and companies start holding back on these purchases, it usually reflects decreased disposable income, tighter credit conditions, or lowered confidence in future financial stability. Simply put, people do not buy cars or even think about buying cars when they are worried about job security, inflation, or rising interest rates.

For individuals, the cost of living plays a major role. In times of economic downturn, when fuel prices are high, food costs are soaring, and inflation is eroding purchasing power, many opt to maintain older vehicles rather than take on the financial burden of buying a new one. 

In some cases, access to vehicle financing also shrinks, with banks and lenders tightening conditions due to economic risks. That means even those willing to buy may not qualify for the loans they need.

For businesses, the impact is just as bad. Commercial vehicles like trucks, pickups, or delivery vans are essential tools for trade, logistics, and services. Therefore, when registrations of these vehicles fall, it usually points to reduced investment, shrinking trade volumes, and slowing industrial output. 

In Kenya, for instance, many small-scale businesses rely on vehicles for transporting goods to markets or clients. A drop in vehicle purchases can therefore reflect a lack of cash flow or concern over profitability in an unpredictable economic environment.

This slowdown also hurts the auto industry itself; vehicle dealerships, auto finance providers, insurance companies, mechanics, spare parts dealers, and fuel stations are all hit hard. That adds to job losses, lower revenues, and shrinking tax contributions to the government.

Essentially, the auto sector functions like an economic thermometer; when sales and registrations fall, it is often because many parts of the economy are already cooling, or freezing.

Even more importantly, a sustained decline creates a feedback loop: weak economic conditions cause vehicle sales to drop, which then weakens industries and services tied to transportation, feeding back into the downturn. It is both a symptom and a contributor to a slowing economy.