In the face of a challenging economic climate, wealthy Kenyans are feeling the impact and making adjustments to their spending habits.
Wealthy Kenyans feel pinch as luxury vehicle sales drop
Sale of brand new cars in the luxury market posted a decline of 38.1%.
One area where cutbacks are observed is the purchase of new luxury vehicles.
According to data from the Kenya Motor Industry Association, sales of brand-new luxury cars declined by 38.1% in the first half of 2023.
KMIA noted reduced orders for luxury brands like Land Rover, Mercedes, BMW, Jaguar, and Range Rover.
The number of brand new Mercedes Benz cars sold reduced to 21 from 23, while BMW sales dipped to two from 14.
Land Rover and Range Rover models experienced a reduction of 50% to nine from 18.
Sales of brand new vehicles in Kenya reduced by 12.5% but the luxury market posted a decline of 38.1%.
Other than signaling a cutback in spending by rich individuals, this could also point to a decline in the purchase of new vehicles by the government and private firms.
According to the 2023 Africa Wealth Report published by Henley & Partners and New World Wealth, around 800 individuals in Kenya dropped off the list of dollar millionaires in the past year.
This decline can be attributed to the weakening of the Kenyan shilling against the US dollar, which resulted in a decrease in the value of their assets and an increase in the price of manufacturing.
Additionally, slow economic growth also contributed to this drop.
The tightening of monetary policies also had a direct impact on sales since the majority of cars bought locally are financed by banks.
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