Market Shock: Have Prices Stabilized 6 Months After the July 2025 CRSP Hike?

1. The "Small Car" Crisis

Previously, a 1500cc Mazda Demio or Toyota Vitz paid duty based on a generic engine class. Now, taxes are calculated on specific trims (e.g., "Demio Touring L-Package").

2. The "Flight to Quality"

With entry-level taxes so high, importers are abandoning the "Budget" segment. If you are paying KSh 700k in tax, it makes no sense to import a base model. We are seeing a surge in High-Spec Imports (Sunroofs, Leather, Turbo) because the fixed tax cost justifies the higher quality asset.