Kenya has witnessed a significant decline in the number of newly registered vehicles over the past year, raising concerns about the state of the country’s transport and economic sectors. According to recent data, the total number of newly registered vehicles and motorcycles dropped from 195,656 in 2023 to 166,514 in 2024, marking a 14.9 percent decrease.
This drop has affected a vital part of Kenya’s economy. The automotive sector not only supports transportation, which is essential for both personal and commercial activities, but also provides thousands of employment opportunities. The decline in new registrations suggests a slowdown in various related industries, from car dealerships and importers to mechanics and parts suppliers.
A closer look at the statistics reveals a more troubling picture. The number of newly registered road motor vehicles alone fell by 21.4 percent, from 119,205 in 2023 to 93,646 in 2024. This indicates that the decrease is more severe in the category of vehicles that are crucial for road transportation, trade, and logistics.
Among specific vehicle types, the drop has been even more pronounced. The number of lorries registered plummeted by 60 percent, from 13,635 in 2023 to just 5,456 in 2024. Trailers followed a similar trend, recording a 66.7 percent decline to 2,123. These two categories are critical for transporting goods across the country and their decline could reflect reduced commercial activity or investment.
Panel vans and pick-ups, commonly used by small businesses, also saw a sharp decrease in registrations, falling by 54.6 percent to 5,879 in 2024. Tractors, which are vital for agricultural production, recorded a significant 67.5 percent drop. Buses and coaches saw a decline of 53.5 percent, indicating reduced investment in public transport, while saloon cars and minibuses dropped by 15.9 percent and 8.7 percent, respectively.
Interestingly, the only category that recorded an increase was station wagons. Their numbers rose by 4.0 percent, from 61,711 in 2023 to 64,204 in 2024. This could indicate a shift in consumer preference toward more versatile and family-friendly vehicles.
The motorcycle segment, which plays a crucial role in last-mile transport and is a major source of income for many Kenyans, was not spared either. New registrations of motorcycles, autocycles, and three-wheelers dropped by 4.7 percent, from 76,451 in 2023 to 72,868 in 2024. Three-wheelers, commonly used as taxis in urban and semi-urban areas, declined sharply by 29.4 percent to 4,064 in 2024.
The trend extended to the issuance of driving licenses. There was a 14.7 percent decline in the number of Public Service Vehicle (PSV) licenses issued, from 71,980 in 2023 to 61,429 in 2024. This indicates a possible decrease in people entering the commercial driving sector, likely due to reduced opportunities or increased operational costs.
The overall decline in new vehicle registrations and driving licenses is being linked to the broader economic challenges the country is facing. An economic slowdown, coupled with new taxation policies, may have discouraged investment in both personal and commercial vehicles. High costs, reduced disposable income, and increased duties on vehicle imports are likely among the contributing factors.
This downturn in vehicle registration serves as a reflection of broader economic pressures and could have lasting impacts if not addressed through supportive policies and economic recovery strategies.
