Kenya Used Car Market Research Report By Car Body Type (Hatchbacks, Sedans, SUVs, MPVs), By Car Brand (Toyota, Nissan, Mitsubishi, Subaru, Honda), By Car Age (1-3 Years, 4-6 Years, 7-9 Years, 10 Years and Above), By Fuel Type (Petrol, Diesel, Hybrid, Electric), By Car Transmission (Manual, Automatic, CVT) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Kenya Used Car Market Overview:

As per MRFR analysis, the Kenya Used Car Market Size was estimated at 1.47 (USD Billion) in 2022. The Kenya Used Car Market Industry is expected to grow from 1.53(USD Billion) in 2023 to 2.17 (USD Billion) by 2032. The Kenya Used Car Market CAGR (growth rate) is expected to be around 3.96% during the forecast period (2024 - 2032).

Key Kenya Used Car Market Trends Highlighted

Key Market Drivers: The demand for used cars is supported by factors like an increase in population, higher disposable incomes, urbanization, and the emerging middle class in Kenya. Better infrastructure, along with supportive government policies, has also helped in the growth of the market.

Opportunities to be Explored: The market offers new local and international players ample opportunity to come in and carve out a niche. There is further development potential by venturing into other markets, such as the electric and hybrid vehicle segment.

Recent Trends: The evolution of technology has resulted in the creation of online marketplaces, including eazymutande.com, as well as mobile programs, which ease the interaction between the seller and the buyer. The growth of services like Uber has led to an increase in the number of used cars being purchased for the purpose of operating transport services.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Kenya Used Car Market Drivers

Growing Population and Urbanization

The population growth and the urbanization of the country are the most significant aspects that increase the size of the used car market in Kenya. More people in the country need transportation, and at the same time, urbanization leads to a higher demand for cars. For example, those who move to a city for education or work often do not have a personal car, and in many cases, they cannot afford to buy a new vehicle. In other words, the population of the modern country and the growing middle class in Kenya are the primary factors in the demand for used cars. 

Also, the availability of financing to purchase a used car is an essential aspect that shapes the size of the used car market in the chosen country. There was a time when financing for used cars was impossible. However, currently, a range of Kenyan banks and other financing institutions offer various opportunities for obtaining a loan to buy a used car. At the same time, the population’s increased mobility and the spread of online car-trading websites significantly influence the size and trends within the used car market in the selected country.

As an example, auto-selection.co.ke is an online service focused on the Kenyan market and trading used vehicles. The company is known for providing buyers and sellers of used cars with the opportunity to find each other and lower their transaction costs. The role of these websites and their popularity among the contemporary population is noteworthy. As a result, the following factors are likely to outline the size of the used car market in Kenya in the short and medium terms: increased population and urbanization, middle-class growth, higher availability of financing, and online trading websites’ popularity.

Government Policies and Regulations

Furthermore, government policies and regulations can also have a significant effect on the used car market. For example, the government can tax used cars, and this would increase the price of used cars. The government can also regulate the used car market, and this would impede the process of buying and selling used cars. In Kenya, the government has implemented a number of policies and regulations that have affected the used car market. Foremost, the government has taxed used cars, and this has made them more expensive to purchase. Similarly, the government has regulated the used car market, and this has made it hard to buy and sell used cars. These policies and regulations have had a negative impact on the used car market in Kenya.

Economic Conditions

The economic conditions in Kenya can also affect the used car market. For example, during times of economic growth, the demand for used vehicles is likely to grow, too. The matter is that when people have more money, they are willing to spend some of their income on cars and other types of vehicles. In a time of recession, the demand for cars is likely to decrease, as people will have fewer resources to spend on cars and other things they may want to have. The economic conditions of Kenya have been relatively stable since the time of the research, as indicated by the sector’s growth.

Kenya Used Car Market Segment Insights:

Kenya Used Car Market Car Body Type Insights

The Car Body Type segment of the Kenya Used Car Market will witness lucrative growth in the upcoming years. This body type is becoming popular because of affordable pricing and better fuel efficiency. Hatchback will be the leading segment in Kenya's used car market, and its sales will account for a considerable market share. In Kenya, the sales of the Sedan body will also contribute to an increase as people in the mid-size and luxury segment opt for this body type. SUV, on the other hand, will be the fastest-growing segment, as it is a big, spacious and multipurpose vehicle, and most people generally buy these for commercial reasons.

The MPV body type will account for sales, which will benefit only niche segment customers; people who have a big family and commercial people who need space will opt for this body type. As per revenue, the Kenya Used Car Market Hatchback market is evaluated to be worth USD 450 million in 2023, and it is projected to reach USD 630 million by 2032, growing at a CAGR of 3.6%. The Sedan market will grow from USD 380 million in 2023 to USD 550 million in 2032, growing at a CAGR of 3.4%. The SUV market is rising from USD 320 million in 2023, and it is expected to reach USD 490 million by 2032, growing at a CAGR of 3.9%.

The MPV market will grow from USD 250 million in 2023 and will reach USD 370 million by 2032, growing at a CAGR of 3.2%. The growth in Kenya's Used Car Market can be attributed to factors such as rising urbanization, increasing the middle class, and expanding road infrastructure. Used cars are more affordable than new cars, so most Kenyan will prefer car buying from used car dealers. The government of Kenya is also supporting the used car business as it is now developing in local assembly and manufacturing units.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Kenya Used Car Market Car Brand Insights

The Car Brand segment in the Kenya Used Car Market is highly competitive, with several dominant players holding significant market share. Toyota, Nissan, Mitsubishi, Subaru, and Honda are among the leading brands in the market, accounting for a substantial portion of the overall revenue. Toyota is the market leader, known for its reliability, durability, and fuel efficiency. Nissan follows closely, offering a wide range of models that cater to diverse consumer needs. Mitsubishi has established a strong presence in the market, particularly in the SUV and pickup truck segments.

Subaru is another popular brand renowned for its all-wheel drive technology and safety features. Honda, with its reputation for fuel-efficient and technologically advanced vehicles, also holds a significant market share. The intense competition among these brands drives innovation, product development, and aggressive marketing strategies, ultimately benefiting consumers with a wide selection and competitive pricing.

Kenya Used Car Market Car Age Insights

The Car Age segment is a critical factor in the Kenya Used Car Market, influencing market growth and revenue generation. Recent data indicates that the '1-3 Years' segment holds a significant market share, driven by factors such as lower depreciation costs and improved vehicle condition. The '4-6 Years' segment follows closely, with consumers seeking a balance between affordability and reliability. The '7-9 Years' and '10 Years and Above' segments cater to budget-conscious buyers and those seeking specific classic or vintage models. As the market continues to evolve, the segmentation based on the Car Age will remain crucial for understanding consumer preferences and developing targeted marketing strategies.

Kenya Used Car Market Fuel Type Insights

The Fuel Type segment of the Kenya Used Car Market is segmented into Petrol, Diesel, Hybrid, and Electric. Petrol vehicles currently dominate the market, accounting for over 70% of total sales in 2023. Diesel vehicles are also popular, with a market share of around 25%. Hybrid and electric vehicles are still relatively niche, but their market share is expected to grow in the coming years. One of the key factors driving the growth of the petrol segment is the relatively low cost of petrol compared to diesel. Petrol vehicles are also generally more fuel-efficient than diesel vehicles, making them more appealing to cost-conscious consumers.

Diesel vehicles, on the other hand, offer better torque and towing capacity, making them more popular among commercial and recreational users. Hybrid and electric vehicles are becoming increasingly popular due to their environmental benefits. Hybrid vehicles combine a petrol engine with an electric motor, which allows them to achieve better fuel economy than petrol-only vehicles. Electric vehicles, on the other hand, are powered solely by electricity, which makes them zero-emission vehicles. The growing awareness of environmental issues is expected to drive the growth of the hybrid and electric vehicle segments in the coming years.

Kenya Used Car Market Car Transmission Insights

Car Transmission segment of the Kenya Used Car Market is expected to witness robust growth in the coming years. In 2023, the Manual transmission segment held the dominant share of the market, accounting for over 60% of the total revenue. However, the Automatic transmission segment is projected to expand at a faster CAGR during the forecast period, driven by increasing consumer preference for convenience and comfort. CVT (Continuously Variable Transmission) is another emerging segment that is gaining traction due to its fuel efficiency and smooth driving experience.

Overall, the Kenya Used Car Market for Car Transmission is expected to reach a market size of over 1.8 billion USD by 2027, expanding at a CAGR of approximately 4.5%. The market growth is attributed to the rising disposable income, increasing urbanization, and growing demand for personal mobility solutions in Kenya.

Kenya Used Car Market Regional Insights

The regional segmentation of the Kenya Used Car Market offers valuable insights into the market's geographical distribution and growth prospects. North America is projected to hold a significant share of the market, driven by factors such as the presence of established automotive industries, high disposable incomes, and a growing demand for used vehicles. Europe is another key region, with a mature used car market and a strong preference for premium and luxury vehicles. 

The Asia-Pacific (APAC) region is expected to witness robust growth, fueled by rapidly expanding economies, increasing urbanization, and a growing middle class.South America and the Middle East and Africa (MEA) regions are also expected to contribute to the overall market growth, driven by rising disposable incomes and a growing demand for affordable used vehicles.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Kenya Used Car Market Key Players and Competitive Insights:

Kenya Used Car Market is highly competitive, with various players, both local and international, erring for a share of the market. Car General, Toyota Kenya and DT Dobie are the leading players in this market. These players have a vast presence in the market and have a wide range of used cars for their clients. The others include Nissan Kenya, Isuzu East Africa and Simba Corp, among others. The demand for used cars in Kenya is high, which means more players are bound to enter the market. This is an indicator that the market is bound to be even more competitive in the future.

Leading Kenya Used Car Market Players

The leading car dealer in Kenya is Car General. The company has a large number of dealerships in the country. It deals in a wide variety of used cars of different maker. The company is recognized for its high-quality cars that are in substantially good shape at the time of purchase. The company has maintained a large share of the market and is considered a trusted brand by most clients. Car General won the 2011 Dealer of the Year award from Isuzu EA and the Best in Class award from the Global Quality Foundation.

Major Competitor in Kenya Used Car Market

Toyota Kenya is a major competitor of Car General in Kenya Used Car Market. The company is the official dealer of Toyota cars in the country. The company has a wide range of used Toyota vehicles. Toyota vehicles are known for their durability and reliability. The brand is one of the most recognized in the world. Toyota Kenya is set to become even more powerful after investing in its staff and facilities.

Key Companies in the Kenya Used Car Market Include:

• Kia Kenya


• Isuzu Kenya


• MercedesBenz Kenya


• BMW Kenya


• Subaru Kenya


• Ford Kenya


• Toyota Kenya


• Honda Kenya


• Hyundai Kenya


• Mazda Kenya


• Nissan Kenya


• Mitsubishi Kenya


• Volkswagen Kenya

Kenya Used Car Market Industry Developments

The Kenya Used Car Market is projected to reach USD 2.17 billion by 2032, exhibiting a CAGR of 3.96% during the forecast period (2024-2032). The market growth is attributed to factors such as increasing urbanization, rising disposable income, and a growing preference for used cars over new vehicles due to affordability and availability.

In terms of recent news developments, the Kenyan government has implemented a new policy that requires all used car imports to undergo a mandatory inspection to ensure compliance with safety and environmental standards. This regulation is expected to positively impact the market by enhancing consumer confidence and promoting transparency.

Additionally, the rise of digital platforms and online marketplaces has facilitated the buying and selling of used cars, providing greater convenience and access to a wider range of vehicles. Market players are also focusing on offering financing options and extended warranties to attract customers and drive sales.

Kenya Used Car Market Segmentation Insights

• Kenya Used Car Market Car Body Type Outlook
  
  
  
  • Hatchbacks
  
  
  • Sedans
  
  
  • SUVs
  
  
  • MPVs
  
  
  
  


• Kenya Used Car Market Car Brand Outlook
  
  
  
  • Toyota
  
  
  • Nissan
  
  
  • Mitsubishi
  
  
  • Subaru
  
  
  • Honda
  
  
  
  


• Kenya Used Car Market Car Age Outlook
  
  
  
  • 1-3 Years
  
  
  • 4-6 Years
  
  
  • 7-9 Years
  
  
  • 10 Years and Above
  
  
  
  


• Kenya Used Car Market Fuel Type Outlook
  
  
  
  • Petrol
  
  
  • Diesel
  
  
  • Hybrid
  
  
  • Electric
  
  
  
  


• Kenya Used Car Market Car Transmission Outlook
  
  
  
  • Manual
  
  
  • Automatic
  
  
  • CVT
  
  
  
  


• Kenya Used Car Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa