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Tightened Government Scrutiny Has Led To A Decrease In The Orders Of Luxury Cars In Kenya



Kenyans buying luxury vehicles have decreased by 43 pc in the nine months to September leading to a sharp decline in the unit sales of new vehicles generally.

Data from the Kenya Motor Industry (KMI) show that unit sales of high end brands like Porsche, Range Rover and Jaguar fell to about 112 In the review period compared to 198 the previous year.

Scrutiny from agencies like the Kenya Revenue Authority (KRA) have been a huge factor in the reduced demand for the high-end vehicles whose prices can go upto sh20 million mark. Other factors include franchise and supply chain disruptions in the industry.

Car dealers claim

Car dealers claim the increased government scrutiny of luxury spending and large financial transactions is bad for business and has discouraged buyers of top-end cars.

KRA have been working with Interpol to nab vehicles stolen from the United Kingdom using car registration details. The details are also being used to smoke out individuals who are driving high-end vehicles like BMW, Mercedes, Porsche and Land Rover who have not being paying taxes.

Unit sales of Porsche dropped to 22 units, or 46.3 percent, in the review period from 41 a year earlier while those of Bentley declined to three from four.

There have also been global stockouts of several luxury car models following global manufacturers’ production decisions and changes in the ownership of local franchises. Porsches and Bentleys for example were out of stock for four months.

KRA has set out to raise more revenues to meet their target from individuals whose lifestyles suggest they have higher incomes than what their tax payments indicate.

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