Mombasa: Mombasa car dealers have raised concern over declining vehicle sales, citing the impact of global conflicts and stringent government policies as major factors contributing to reduced business and mounting losses. The dealers say ongoing tensions between Israel and Iran have disrupted international trade, resulting in shipment delays and lower demand for imported vehicles. Many potential buyers have become hesitant to place orders due to uncertainty in global markets.
According to Kenya News Agency, the traders are urging the national government to reconsider tighter restrictions on imported used vehicles. Under the new regulations, all imported right-hand drive vehicles must have been first registered in 2019 or later, in line with the country’s eight-year age limit. Vehicles registered before 2019 will be rejected at the importer’s cost. The government maintains that the policy aims to improve road safety, reduce environmental pollution, and promote local vehicle assembly. However, dealers argue that it will significantly affect their operations.
They have also protested what they term as excessive levies imposed by the Mombasa County Government, describing the charges as multiple, punitive, and unsustainable. The traders say high taxation is eroding profit margins and making it difficult to sustain operations. Speaking in Mombasa, Mombasa Car Dealers Association Chairperson Jackson Ndevera said global political developments are directly affecting their business.
“One of the major challenges we are facing is the impact of international conflicts. The wars in different countries are affecting our clients, and they are no longer able to purchase high-end vehicles,” he said. Ndevera noted that dealers are currently holding large stocks of unsold vehicles, unlike previous years when sales were steady.
“We have many cars in our yards, but we are not able to move the units we used to sell a few months or years ago because of global issues,” he added. He called for closer collaboration between business stakeholders and both levels of government to find workable solutions.
“We need both the national and county governments to engage us. By listening to our concerns, we can develop short-term and long-term solutions that will help sustain this sector,” he said. The dealers are appealing for leniency in the implementation of the new import rules to allow them time to clear existing stock, including vehicles affected by shipment disruptions linked to the conflict.
They have also invited Mombasa Governor Abdulswamad Nassir to engage them in dialogue aimed at streamlining taxation and improving the business environment. According to the dealers, the sector has been operational for over 40 years and supports thousands of livelihoods through direct and indirect employment. They estimate that about 65,000 vehicles are currently held in Mombasa.
Another car dealer, Ken Sasi, said permits from Mombasa County are significantly higher than those charged in Nairobi. “The permits from Mombasa County are exorbitant compared to what our counterparts in Nairobi are paying. We are paying nearly three times more than what they pay in Nairobi. I appeal to the Governor and the County Executive Committee Member for Trade, Tourism and Culture, Mohamed Osman, to engage us so that we can address the issues affecting our operations,” he said.
James Macharia accused the Mombasa County Government of imposing excessive and punitive taxation on car dealers, particularly through business advertisement signage fees, which he said should be reviewed downwards. The traders warn that unless urgent measures are taken, the combined effects of global instability, restrictive import policies, and heavy taxation could further weaken the sector, potentially leading to job losses and reduced economic activity in the region.