Dealers say they have been forced to cut prices to clear stocks in a market where the more a car remains unsold the more it loses value, partly due to a greater preference for the latest number plates.

There have also been sales of cars seized by banks and auctioneers which has increased supply and competition to the used car dealers. This has put further pressure on the prices of second-hand cars in the country.

“People (dealers) have been forced to throw them away and there is no money flowing in the economy. Demand is not there. Dealers are stuck with the old stock from last year,” said Charles Munyori, the secretary-general of Kenya Auto Bazaar Association, which represents used car dealers.

Profits, in general, have also dipped with dealers making as low as Ksh 100,000 on some models. The dealers risk having to merely break even or suffer losses in these crisis times.

According to data from the Motor Vehicle Registration, sales of saloon cars such as Toyota Corolla fell the most at 46.5% with only 2,256 units sold in the first half of the year as compared to last year’s 4,219 units.

Sales of station wagons like Subaru Outback also dropped 36.4 percent to 18,934 units from 29,772 units. Overall registration of cars, including pick-ups, minibusses, lorries, trailers, and buses, fell 36.5 percent to 27,250 units in the five months to May.