The motor vehicle industry registered a major decline last year as many households and businesses froze acquisitions owing to a mix of factors.

These included tough economic conditions, refusal by banks to lend to Kenyans and high taxes that affected both spending power for many and drove up vehicle costs.

The total number of newly registered vehicles dropped 21.4 per cent, according to the Economic Survey 2025 launched on Tuesday, to 93,646 units last year from 119,205 units in 2023.

The number of newly registered vehicles last year was the lowest since 2017.