Mercedes Benz S600 auction points to tough economic times for Kenya's wealthy individuals

The country’s economic slump has taken a toll on citizens, with many facing the distressing prospect of losing their valuable assets.

Local dailies have witnessed an increase in auction notices, shedding light on the growing hardships faced by individuals and families across the nation.

“The auction pages in newspapers have been growing. It is unfortunate that there are so many auctions going on. We haven’t fully recovered from Covid-19 and we had elections last year and things tend to slow down during the elections period," a senior executive at a local bank said earlier in the year.

On Tuesday evening, May 30, a car auction slated for June 9 captured the attention of car enthusiasts on Twitter.

The auction featured an array of vehicles, including the coveted Mercedes Benz S600, Mercedes Benz C200, BMW 320I, and Toyota Crown.

An auction notice published in local dailies An auction notice published in local dailies Pulse Live Kenya

While all the cars are considered luxurious, it was the presence of the Mercedes Benz S600 that particularly surprised many, drawing attention to the broader issue of asset loss in challenging times.

Widespread job losses and reduced incomes have become the norm, pushing countless individuals and families into precarious financial situations.

READ: Kenya's economic forecast takes a dip

Despite the government's efforts to revive the economy through various measures, the effects have been slow to materialize, leaving many Kenyans grappling with financial instability.

According to data from the Central Bank of Kenya (CBK), there has been an increase in non-performing loans (NPLs) in the country, signalling the ongoing economic challenges.

The ratio of gross NPLs to gross loans stood at 14% in February 2023, reaching its highest level in six months, compared to 13.3% in December 2022.

Mercedes Benz S600 Mercedes Benz S600 Pulse Live Kenya

The CBK's analysis highlighted that the sectors experiencing notable increases in NPLs include trade, personal and household, manufacturing, and building and construction.

These sectors have been particularly vulnerable to the economic downturn, resulting in a growing number of unpaid loans.