While Kenya’s economy is at its worst because of COVID-19, the elite in the country seem to be doing better than they were before the pandemic.
Data from the Kenya Motor Vehicle Industry Association (KMI) shows orders for high-end cars has risen to 79 units from last year’s 69. According to KMI, the increase is majorly credited to Mercedes and BMW sales.
In fact, luxury car sales have outpaced the entire new vehicle market that saw orders fall 26.4 percent to 4,628 units from 6,294 units.
As per the data from KMI, the Kenyan high class have increased their spending at a time when most businesses and workers suffered major income declines.
The country announced its first case of the virus on March 13, setting off a panic and plunge in demand in the wake of containment measures such as night curfew that led to job cuts and unpaid leave.
The Kenyan economy is expected to drop below 2.5% this year, down from a pre-pandemic forecast of more than 6%. Middle and lower class Kenyans have felt the effect of the pandemic while the high class continue spending on high-end luxurious cars.
Prices of most new luxury cars range from Ksh 6 million to Ksh 20 million, with a few models crossing the Ksh 30 million mark.
Mercedes Car orders rose from 24 to 37 while BMW order rose to 14 from 3. The two models were the most bought during the first half of the year.
There were no Jaguar sales in the review period, compared to seven the year before.
Land Rover sales, including Range Rovers, dropped to 18 from 22 while orders for Bentleys fell to one from three. Porsche sales also declined to nine from 10.
The trend shows how high net-worth individuals and profitable companies have significant cash buffers and can maintain or raise their spending while the economy is on its knees.
The luxury car segment is flourishing while the rest of the market, including the mainstay commercial vehicles, declines in response to the current economic situation.
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