If you were planning to ditch the “walking” class and join the driving class, then you will have to either dig deeper into your pocket or wait longer. Most Kenyans do not buy brand new cars because their prices are far too high. Majority opt for second hand cars which are cheaper. But with the new tax model proposed by Kenya Revenue Authority on used imported cars, buying these second hand cars will prove an uphill task for majority of Kenyans.
According to a report published on the kenyawallstreet.com, the Car Importers Association of Kenya (CIAK) estimates a 43% increase in retail prices of used imported cars due to increased taxation. The CIAK chairman Peter Otieno said the current retail selling price of used imported cars has caught them by surprise because KRA did not consult them.
The report further gives an example of how the current retail selling price (CRSP) will affect the prices of Lexus and Toyota Land Cruiser models. For instance, a 3500cc Lexus RX450 that went for Sh6, 982,000 in 2017 now goes for Sh11, 525,368 while a Toyota Land Cruiser has increased from Sh17.9 million to Sh21, 671,820.”
The saying that goes, “The rich will get richer while the poor will get poorer” aptly captures this scenario. Now as the rich will continue to buy more cars to add to their already long fleet, common 'wananchi' will have to wait a little longer for the prices to come down. For the middle class who wanted to join the driving classes, it seems they will have to torn down a little bit and bow down to the slogan, “Keep Walking.”
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