Car Prices in Kenya Are About to Rise — Avoid These 9 Dealer Tricks That Will Cost You Even More

🚨 Introduction and Why This Matters Now

If you are planning to buy a car in Kenya, now is the time to act smart. From July 2025, the Kenya Revenue Authority (KRA) will implement higher taxes on imported used vehicles, pushing prices up by as much as 145% in some cases. However, dealers are already inflating prices—even before these new tax rules kick in.

Using a mix of hidden fees, inflated margins, and misleading tactics, dealers are quietly hiking up the final price tag far beyond what the car is actually worth. In this guide, we will expose 9 sneaky tricks Kenyan car dealers use to overcharge you—especially during this transition period—and how to protect your wallet before it's too late.

1. Using “Market Price” Instead of “Market Value”

Dealers often quote the retail market price—what they want to sell the car for—instead of the true market value, which reflects what similar vehicles are going for.

👉 According to Peach Cars, the difference can run into hundreds of thousands of shillings.

What to do: Always check classifieds, Facebook Marketplace, and PeachCars to gauge real value before buying.

2. Blaming the KRA Tax Schedule—Even When It Does not Apply

Dealers may cite the new KRA tax framework as the reason for inflated prices—even on cars imported before it came into effect.

🚨 From July 1, 2025, KRA will apply a 145% tax on certain used vehicles based on a revised Retail Selling Price (RSP) formula.

What to do: Ask for the importation and clearance date. If the car cleared before July, the new taxes don’t apply.

3. Adding Fake Fees Like “Dealer Preparation” or “Service Charges”

Dealers sometimes sneak in charges such as:

• Cleaning and polish fees
• “Logbook processing”
• Dealer inspection or “margin adjustments”

What to do: Ask for a detailed invoice. If it’s not officially itemized, it’s probably fluff.

4. Overstating the Vehicle Grade or Trim

Badging a base model as a “Premium” or “G-Spec” vehicle is common, especially with Japanese imports. Many buyers pay more without knowing the actual trim.

What to do: Use the chassis number to verify the model and trim from Japanese auction databases or import platforms.

5. Masking High Mileage or Damage with Cosmetic Fixes

Repainted exteriors, replaced dashboards, and fresh seat covers often hide high mileage or previous accidents.

What to do: Bring a trusted mechanic or request a third-party inspection before buying.

6. Selling at Tax-Inclusive Prices Without a Clear Breakdown

A dealer may offer a “tax-inclusive” price but avoid showing how much went to:

• Import duty
• Excise tax
• VAT
• IDF and RDL fees

What to do: Cross-reference KRA guidelines on duty payable with this detailed tax breakdown.

7. Charging Extra for Logbook and Registration

If the price doesn't include registration, number plates, and logbook transfer, expect an extra KES 10,000–25,000 bill—often sprung on you late in the process.

What to do: Confirm in writing whether the quoted price is on-the-road or ex-yard.

8. Using the KEBS Rule Changes as an Excuse to Overcharge

New KEBS guidelines effective January 2025 tighten vehicle inspection and age limits. Dealers are already blaming these rules for inflated prices—even for cars imported earlier.

What to do: Ask to see the KEBS PVoC certificate and verify the inspection date.

9. Reserving Clean-Title Vehicles for Premium Buyers

Some dealers reserve cars with clean auction sheets (no damage, verified mileage) for corporate or repeat clients—then sell lesser-quality units to individual buyers at inflated rates.

What to do: Ask to see the auction sheet or pre-shipping inspection report. Refusal to provide one is a red flag.

🧾 Final Word: Don’t Pay More Than You Should

With KRA tax hikes taking effect from July 2025, car prices are already trending upward. But that’s not an excuse to let dealers quietly add their own markup through shady tactics.

Before buying:

• Do your own valuation checks
• Ask for full tax and importation breakdowns
• Demand transparency on inspection, trim level, and mileage

Want to stay ahead of price changes and avoid getting ripped off? Bookmark resources like PeachCars, KRA updates, and follow credible motoring blogs and valuation tools.

Note: For the latest updates on car import taxes and regulations, refer to official KRA communications and trusted news sources.

Remember!

If you are eyeing a set of wheels but your budget is tight we are here to give you that boost that makes the difference between “maybe next year” and “Now”

Contact us through our contact form, call us on +254791573231 or visit one of our branches  across Nairobi, Kiambu, Machakos, and Kajiado counties to explore your financial opportunities