Why have petrol prices gone up in Kenya?

Energy and Petroleum Regulatory Authority (EPRA) changed prices in March 2022. The first increases since October 2021. The state partially removed the fuel subsidy. It caused diesel and gasoline prices to skyrocket to an all-time high. EPRA attributed the increase to higher landing costs of refined petroleum products over the previous month. It said that petroleum products’ prices increased by double digits.

The landed cost of a product is the price it costs when it arrives in Mombasa before including taxes, levies, and oil marketer margins. When the government neglected to apply the subsidy in the September-October 2021 pricing cycle, fuel prices reached their present levels. But the state reinstated the fuel subsidy in the October-November pricing cycle. Over the last five months, local retail prices have stayed steady.

The stabilization program

The Petroleum ministry collects money through the Petroleum Development Levy to protect customers from the effects of fluctuating fuel costs. The Petroleum ministry channels the funds to the subsidy scheme under the stabilization program. In the current financial year in the Supplementary Budget, the National Treasury allocated Sh25 billion to the stabilization program.

Under the subsidy scheme, the state compensates oil marketers for the price differences to cushion the customers. But, the funds in the stabilization program are not enough to sustain the subsidy. Russia’s invasion of Ukraine caused a significant rise in fuel costs.

The steep rise in crude oil prices drained the fund and rendered it unsustainable. As a result, the Treasury is struggling to cover the expense of the subsidy, forcing a partial withdrawal.

On the International Scene

Even though local prices have remained steady in Kenya, crude oil prices have risen in recent months, owing to increased demand as economies recovered from Covid-19. The situation deteriorated in February as a result of the Russia-Ukraine conflict. Russia is the second-largest oil exporter in the world.

For the next one or two months, the impact of the Russia-Ukraine conflict is projected to worsen the situation. The Eastern European crisis has resulted in an increase in the price of crude oil plus the costs of transporting it.

What Impacts Global Fuel Prices?

High crude oil prices are the primary reason that drives up fuel prices. The crude oil price makes up 43% of the total fuel cost at the pump. The remaining 57% includes refinement, distribution and marketing costs, and taxes. The prices of these inputs do not fluctuate as much as the price of oil. The benchmark for global oil pricing is Brent North Sea oil.

When Brent oil prices rise, expect fuel prices to climb as well. Over time, a $10 increase in the price of oil per barrel corresponds to around a Sh5 per liter increase in fuel prices. Supply and demand, commodities traders, and the value of the American dollar are the three elements that affect fuel and underlying oil prices.

The Laws of Supply and Demand

Both gas and oil prices are affected by supply and demand, just like other products you buy. Prices rise when demand exceeds supply and vice versa. In 2020, for example, when the COVID19 wave crested, excess oil supplies and lowered fuel prices, but the slump was short-lived since cheap prices drove many countries to want to stock on fuel.

Seasonal demand also has a significant influence on oil and fuel prices. Fuel prices often climb in the spring. Summertime usually witnesses a spike in petrol demand as families head off on vacation in Western countries.

Commodities Traders

Commodity traders, such as those who trade wheat, oil, and gold, are also to blame for rising fuel prices. They buy oil and gasoline on the commodities futures markets. Businesses can use the marketplaces to buy fuel contracts for future delivery at a pre-determined price. But most traders have no interest in acquiring ownership. Instead, they want to benefit from the contract by selling it.

The fluctuations in these futures contracts have an impact on both gas and oil prices. The purchasers determine expectations price for future gas or oil prices.

The American Dollar Value

When the value of the US dollar falls, gas and oil prices rise. Oil prices soared between 2002 and 2008 due to a considerable depreciation of the currency. All oil futures are priced in US dollars. It is part of the reason why there was a drop in oil prices between late 2014 and 2016.

The Organization of Petroleum Exporting Countries (OPEC) members were able to generate more money while maintaining supply stability because of a high currency.

 How have the rising fuel costs impacted you or your business? Share your thoughts with us!

When you think of a hybrid car, your mind most likely jumps to the Toyota Prius, and rightly so. The Prius has been the quintessential symbol of the fuel saving technology that is hybrid cars since its debut in 1997. While the Prius has remained astute and reliable, car makers have since rolled out other options in a bid to offer variety to those looking to go green.

Perhaps you are thinking of a hybrid for your next car. If for the most part you drive in and around busy towns such as Nairobi, Mombasa or Nakuru, a hybrid car will suit you well. You will be saving money on fuel and lowering your carbon footprint, which is something we should all be thinking about. But what exactly is a hybrid car, how does it work, and what is the advantage of driving a hybrid?

What is a Hybrid Car?

There’s a lot of misunderstanding about hybrid cars out there. A hybrid car uses a conventional engine (either petrol or diesel) and a battery-powered electric motor(s). Think of it as a cross between the normal combustion engine vehicle and a fully electric car. By using these two types of energy sources, it maximizes efficiency.

Sometimes the conventional engine does the work, or the electric motor does, and times they collaborate. Hence, less fuel is burned, resulting in improved fuel economy.

How do hybrid cars work?

The electric motor draws power from the hybrid battery when starting from a stop and propels the car forward. While cruising at a usual speed, the electric motor and fuel engine can work together or separately. The conventional engine delivers power when you’re accelerating fast and driving at higher speeds.

Applying the brakes or easing up on the accelerator cuts off power to the wheels. When you come to a complete stop, both the engine and the electric motor turn off. The vehicle systems run on battery power, including lights, radios, and air conditioning.

Are there Different Types of Hybrid Cars?

Yes. There are three main types of hybrid designs built to achieve different goals. These are:  

Full (Parallel) Hybrid

This is the most common hybrid design, with the Toyota Prius being a good example.  A single transmission connects the engine with the electric motor(s), blending the two power sources.

A parallel hybrid can use either the combustion engine, the electric motor or both to run. When you do slow speeds such as around town or short distances, the full hybrid runs in electric mode, conserving fuel. A parallel hybrid is self-charging.  Other than the Prius other examples are the Lexus, Honda Insight, Chevrolet Volt and Toyota Auris.

Plug-in hybrids or PHEV

This concept falls somewhere between traditional hybrids and all-electric automobiles. It improves the car by incorporating a larger battery pack like an electric car. You’ve to charge the battery using an external electric source at home, the office, or at a public charging station.

This increased energy storage capacity is comparable to a bigger petrol tank. Depending on the model, it can allow for up to 48 KM of all-electric driving, reducing fuel usage significantly. If you drive only a short distance every day, you can charge your battery overnight, and use it during the day.

In theory, you can use your plug-in hybrid without ever using the fuel engine. That would be a real fuel saver! Popular examples in this category include the BMW 330e, Volvo V60, and Mitsubishi Outlander PHEV.

Mild Hybrids

Typically, a mild hybrid car contains the normal combustion engine and a small electric motor. The electric motors serve to assist the engine, but cannot function independently.

In mild hybrids, the system recharges through regenerative braking, a mechanism where energy is harnessed when the vehicle slows down or stops. This energy (kinetic) is in turned into electricity that recharges the battery. Statistics show that a mild hybrid is up to 15% more efficient that a normal combustion engine vehicle.

 What are the advantages and disadvantages of a hybrid car?

Pros:

• Hybrid cars are environmentally friendly
• Hybrids are economical- can save you money on fuel, coolants and oil
• A variety of body styles from different manufacturers are available
• Hybrid cars are quiet (fun fact- a Toyota Prius is completely silent when driven under 8km/hr.)
• Hybrids require less maintenance. The use of two sources of power means less engine wear and tear.
• Extended warranties: you can get an eight to ten-year warranty covering the entire hybrid system

Cons:

• The upfront cost can be higher than a comparable non-hybrid vehicle
• More complex power train than an electric vehicle thus maintenance may be expensive when needed
• Batteries can gobble up interior space

So, should I buy a hybrid car?

If you do short distances within towns, then a hybrid car can prove to be cost-effective for you. This is because as mentioned, you can run your car on electric power alone, saving on fuel. If you do long, frequent trips that require high speeds, a hybrid car may not make much difference. Either way, the ability to have the best of both worlds can be enticing. Whatever you decide, the Croton Motors sales team is here to get you the vehicle of your dreams!

After driving your car for a few years, the time has come to let it go. Or perhaps, you have urgent business to take care of and you need to dispose it off quickly.  Whatever the reason, most of us are unsure of the best way to go about selling a used car in Kenya. You have probably seen a ‘for sale’ sign posted on the windows of many cars. Is this really the most efficient way of selling a car? This article discusses different avenues that you can follow to sell your car quickly in any part of Kenya.

Online Platforms

One of the ways in which you can sell your car in Kenya is through the internet. There has been a recent influx of online market places such as Cheki, Jiji and the like. You can advertise your car here and have potential buyers contact you.  However, selling (and buying) online, in any platform, requires careful due diligence  before you engage with any potential buyer.

Social Media

These days, social media platforms have become instant market places where you can buy and sell almost anything. This means that if you are selling your car, you can post it on your Facebook page or WhatsApp status and have people sending inquiries directly to you. This method does not cost you any money but it can be slow, particularly if you are looking to sell urgently.

Bulletin Boards/ Newspapers/ Magazines

Another way to sell your car is by advertising on bulletin boards in places like Malls, churches, and other high traffic areas. You can also advertise in newspapers or magazines, which can be expensive.  Like social media, this method might be slow and it could take time to sell your car.

Personal networks

For some people, personal networks of family, friends, and work colleagues are the fastest way to sell a car. This is particularly true for those in the diplomatic circles where you can easily buy a car from a departing colleague. The biggest advantage to selling within your network is that the buyer already knows you, eliminating any questions of mistrust. This can accelerate the sale as the buyer does not need convincing.

Car Bazaar

Have you ever visited the car Bazaar at the Jamhuri Showgrounds along Ngong Road? Open every weekend, the bazaar, as it is commonly known is awash with individuals looking to sell their cars. For a fee, you can drive in your car, pick a spot and wait for customers to show interest. One advantage of the bazaar over the other methods discussed above is that here the potential customers get to see the car and inspect it themselves, rather than depending on a photo. This also means that they can quickly make a decision on whether to buy or not.

Car yards/ Showrooms

Similar to the car bazaar, putting up your car in a yard is another quick way of selling. This is because hundreds of potential customers who walk into that yard will see your vehicle. Moreover, most yards have a huge online presence where they advertise on your behalf.  Selling with a yard has many advantages. All you have to do is drop off your car and agree on a price with the dealers. It will then be up to them to get buyers, only contacting you with offers. They also deal with the paperwork and advice you on how to transfer the vehicle online to the new buyer.

The obvious disadvantage to selling with a yard is that you have to leave the car with them. This can be inconvenient if you don’t have another car.

Conclusion

There are several methods that you can use to sell your car in Kenya. These range from advertising on bulletin boards, selling to friends and family and using online platforms. You can also take your car to the Car Bazaar or sell it through an established yard/ showroom. Each method has its advantages and disadvantages that you should keep in mind before choosing. You can also use a combination of two or more of these methods to sell. For example, you can advertise your car on social media and still take it to the car bazaar.

Do You Want to Sell Your Car? At Croton Motors we connect sellers of locally used cars with buyers

How Does it Work?

• Share information about the car/ bring it to our yard
• We will confirm the condition, particulars of the car and take photos
• Set a budget/ price for the car
• Authorize Croton Motors to sell on your behalf
• We will park the car at our yard/market it online (if you are still using it)
• Receive offers on your behalf and make the sale
• Make payment to you and initiate the transfer process

Contact us to sell your car

There is an endless list of items you could have in your car, depending on your needs and preferences. But how many of these can come in handy in an emergency? Whether you are visiting relatives in Nyeri or Kisumu, going on a road trip to the Masai Mara, or your usual town run, there are emergency essentials that you must have in your car at all times.

Emergency essentials are items that come in handy in case of unforeseen obstacles such as car trouble. Their role is to get you back on the road again as quickly as possible.

Here are 8 emergency essentials you should have in your call at all times:

Spare Tire

One of the most likely hiccups you will get on the road is a flat tire. Kenyan roads can be rough, particularly if you are going off the beaten path.  You should therefore carry a well-inflated spare tire at all times. In recent times, most car models, particularly SUVs such as the Rav 4 are coming without a spare tire as standard equipment. Instead, they have a tire repair kit. If you drive long distances and have space, it may be advisable to invest in a spare tire for your vehicle.

Jack & Lug Wrench

Of course, having a spare tire won’t solve your problem if you don’t have a jack and lug wrench. The jack is a lifting device that helps you raise the level of your vehicle to enable tire changing. The lug wrench is used to loosen/tighten the nuts on the wheels. Occasionally, your nuts may be rusty or too tight, in which case it may help to carry a bottle of WD40 to lubricate and loosen them.

Jumper Cables

A flat battery happens even to the best of us when we least expect it. Ensure that you have a pair of jumper cables in your trunk. Trust me; it is much easier to ask for help from a passing driver when you have your own jumpers.

Side note: Check on your jumper cables now and then to ensure that they are in good working order. In my experience, they do tend to get rusty and, eh, useless.

Life Savers

If you are lucky, your car will give you some sort of warning before it stalls for whatever reason. This may give you a chance to park safely on the side of the road. If you don’t have this luxury and stalls right in the middle of the road, you will need life savers/ warning triangles. Reflective metal triangles are designed to warn other drivers that there is a stalled car ahead. They should therefore be placed at a safe distance on both sides of the vehicle.  

First Aid Kit

A well-equipped first aid kit is necessary to nurse emergency cuts, burns, and scrapes, in case of an accident. Its main purpose is to manage the emergency as you wait for medical help or make your way to a hospital.

Torch

A torch is one of the most practical items you can keep in your car.  If your car stalls or breaks down during the night, a torch can come in handy as you take a look under the bonnet, connect jumper cables or change a tire. Similarly, it can help you signal to oncoming traffic about a stalled car, keeping you safe. Because you don’t know how long you may need to use the torch, keep a pair of fresh batteries in the glove compartment.

Duct tape

You will be surprised at how versatile duct tape can be. If you have been in a minor accident and your lights or side mirrors have been broken, duct tape can hold them together long enough to get to your mechanic. Basically, duct tape can hold together almost any car part, including the bonnet, doors, and even the bumper. It will even seal any unexpected leaks until you get help.

Water

A bottle of water will come in handy in case you experience a radiator emergency. Your car may overheat for various reasons. The coolant may be low, or the cooling system may be faulty. Whatever the reason, use water to cool off your engine. This will buy you time to get to your destination or a garage.

Catalytic converter theft is on the rise in different parts of the world, including major cities in Kenya.

Move over spare tires; there is a new attraction for car thieves in town.

Recently, the catalytic converter has become somewhat of a holy grail. As a vehicle owner, you may already know about this gadget, or you are hearing about it for the first time. Everywhere around the world, including here in Kenya, catalytic converter theft is suddenly on the rise. So, what is it, and why is it in such demand?

What is a catalytic converter, and what does it do?

The catalytic converter is a ‘metal box’ found under your car between the engine and the muffler as a part of the exhaust system. Its primary role is to clean up the harmful gas emissions produced when the vehicle runs, turning them into harmless gases such as Co2 and water vapor.

To do this, the catalytic converter uses chemicals called catalysts. These catalysts are coated on the converters’ honeycomb’ interior. Their job is to break down the molecular structure of the harmful gases being released by the engine, thus ‘cleaning’ them up as they are released into the atmosphere.

If you wonder why this clean-up is necessary, think of Limuru on a cold, foggy morning. Now imagine Nairobi, Mombasa, Kisumu, and other major cities filled with such fog, only this time its pollution being emitted by cars. This kind of smog would quickly become harmful to man and the environment.

Why do thieves steal the catalytic converter?

This brings us to the problem. Remember the catalysts that are used to breakdown harmful gasses? They not your ordinary catalysts but precious metals such as palladium, rhodium and platinum. Imagine that. As stricter car emissions are rolled out worldwide, the demand for these metals has gone up, and so have the prices.

Five years ago, 28g of palladium cost $500. In 2021 it has jumped to $2000-2500, higher than the price of gold. Rhodium is estimated to be retailing at 12 times the price of gold. While this jump in prices can be attributed to the increased production of electric cars, it is nevertheless fueling a vibrant black market of stolen catalytic converters.

The COVID 19 pandemic has not helped matters either. Rhodium is mainly mined in South Africa, and with the pandemic slowing everything down, supply has  gone down, raising demand.

Of course, if your catalytic converter is stolen in Nairobi or Mombasa, it is likely to be sold to a scrap yard for much less than its worth.

Fun Fact- The Ferrari F430 carries around not one, but two of the most expensive catalytic converters in the market. Each goes for a mind popping $3,770!

Will I know that my catalytic converter has been stolen?

Unfortunately, you may not realize that your vehicle’s catalytic converter has been stolen. For starters, it is located under the car, so you are unlikely to look there. Industry experts say that you will notice a ‘different roaring sound’ when you start a vehicle with a missing catalytic converter. This sound may get louder or sputter as you accelerate, and generally, the drive will not be as smooth as usual.   

Can I drive my car without a catalytic converter?

Technically, yes. A missing catalytic converter will not interfere with your driving. Newer models may activate the engine light to signify something is wrong when the system doesn’t detect it.

In most developed countries, driving without a catalytic converter is an offense due to the harmful emissions that a vehicle produces without it. Here in Kenya, NEMA regulations stipulate that ‘No person shall cause or allow the emission of visible air pollutants from a stationary or mobile vehicle in excess of the limits set out under the prescribed Standard.’

Similarly, through KEBS, Kenya has adopted the Euro 4 Emission directives, which seek to limit the emission of harmful gases like carbon monoxide by vehicles.

Going forward, the catalytic converter will become even more critical, particularly for the environment.

Which cars are at the most risk for catalytic converter theft?

There are no statistics in Kenya showing which vehicles are at most risk for catalytic converter theft. Going by international trends, hybrid cars such as the Toyota Prius and Lexus RX are at the most risk. This is because hybrid cars run less on fuel, so their catalytic converters are less eroded and contain more precious metals.

It is important to note that most thefts are acts of opportunity. To steal a catalytic converter, a thief has to crawl under your car. Unless someone has targeted your car because it is a hybrid, for the most part, a thief will strike when they see a chance.

This makes it easier to steal from SUVs, trucks, and pickups as they are generally higher than small sedans. Theft can also be influenced by where you park your car. If you leave it for long periods in a poorly lit area or in a basement, chances for theft are higher.

How can I protect my catalytic converter from being stolen?

You can do some things to protect your catalytic converter from being stolen, or if not, make it as difficult as possible.

Remember, thieves can remove a catalytic converter in under five minutes and less if they are experienced.

• Have your mechanic weld it to the car’s frame. This won’t make it impossible to steal, but it will definitely make it harder.
• Where possible, park your car in a well-lit area, near entrances, and in the vicinity of CCTV cameras.
• Have your car serviced in a garage that you trust
• Consider installing an alarm that can detect vibration in the car

Road accidents happen, even to the most careful drivers. Unfortunately, in Kenya, major and minor road accidents are continually on the rise. According to the NTSA, there was a 5.8% increase in road accident fatalities in Kenya by October 2020, compared to the same period in 2019.

Causes of road accidents in Kenya include poor roads, unroadworthy vehicles, flouting of traffic rules, over speeding, incompetent drivers, drunk driving, and weak enforcement of road rules, among other factors.  

Perhaps you have wondered what steps you should take if, God forbid, you found yourself in a car accident.  Whether it’s a serious accident or a minor fender bender, there are specific steps that you should take.

This article outlines 5 things you should do immediately after a car accident in Kenya.

1. Check yourself and your passengers for any injuries

Depending on the extent of the accident, the first thing you should do is to check yourself and any passengers for injuries. If you are seriously injured, try not to move as you wait for help. If you can ask bystanders for help or call a family member or/and the police. If it is a minor accident with damage only to the car, move away from the road to a safe place.

2. Remain at the scene of the accident

Whether it is a minor or major accident, do not attempt to drive away even if you are in the wrong. Leaving the scene of an accident is an offence under Kenyan traffic laws. Instead, call or wait for the police to arrive at the scene for processing. Switch off your car engine and put out lifesavers at a safe distance to warn other drivers of the accident.

Temperatures may run high at the scene of an accident, particularly if one party is clearly in the wrong. Avoid taking any rash action as this can make things worse. Although it may sound easier said than done, try to calm down as you wait for the police to arrive.

3. Exchange information

As you wait for the police or in their presence, exchange information with the other party, if possible. This includes names, contacts, car registration, make, model and color, driver’s license number, and insurance information. Establish if the other driver is the owner of the car or not. Collecting such information is helpful as your insurance company will rely on these details in ascertaining fault and processing your claim.

4. Document the accident

When the police arrive, they will carry out an initial investigation and write out a report. Write down the police officers’ names and badge numbers. If you can, take pictures of the accident scene and of the cars from different angles, showing the extent of the damage and license plates. You may also speak to witnesses for any extra information that you may have missed. Note down any relevant details about the accident as this may be helpful later on. This includes things like weather conditions, road marks, the other driver’s actions, etc. Ensure that you get a copy of the police accident report as soon as it’s ready.

5. Notify your insurance company

You should notify your insurance company about the accident as soon as possible, perhaps even while still at the scene. This way, they will advise you on what is needed and the next steps in filing your claim. Your insurance policy provides for legal representation, and where necessary your insurance company will engage a lawyer in case of legal liabilities.

6. Move the cars from the scene

After the police have taken down all the necessary information about an accident, they will ask you to move your cars from the scene, possibly to the nearest police station. If your vehicles are movable, and you are in a condition to, you will be asked to drive them. If the cars are undrivable, you or the police may request for a tow truck to tow them away. If your car is comprehensively insured, and depending on the specific benefits, your insurance company will reimburse the cost of towing up to an agreed limit. Otherwise, you will have to pay for the tow truck out of pocket.

What NOT to do after a car accident in Kenya!

• Do not run away/ drive off. If there is a threat to you, drive to a safe place or to the nearest police station.
• Report the accident to the police and get a police abstract, no matter how minor it is.
• Accidents can be emotional, especially if you are not in the wrong. Please do not punch or insult the other driver. Sorting things peacefully will be much faster!
• It may be a Kenyan thing, but, unless the damage is very minor, do not ‘visually’ access the damage and exchange money with the other driver without a professional consultation. Your vehicle may need more repairs than you get paid for on the spot, leaving you to go back to your pocket.
• Notify your insurance company about the accident, even if you don’t plan to make a claim. This is important because the other party can turn around and report the accident, blaming you for it,  even after you have worked it out on the spot. You then find yourself time barred from making a claim with your insurer.
• Okay, goes without saying but, please do not bribe a cop to let you go (or to change the facts). Let us fix this nation one incidence at a time!
• Do NOT ignore symptoms like nausea, headache or pain even if you are not visibly hurt. Please consult a doctor to rule out internal injuries even if you feel fine.

Have you ever come across the saying that ‘if you love something, it will love you back in whatever way it has to love?’

This saying is especially true when it comes to our cars. Basically, a car is a workhorse. It faithfully ferries you to and from work, on errands, and wherever else you want to go. In return, all it asks for is some love and care. Unfortunately, we don’t always keep our end of the bargain in this relationship. This not only punishes the car but can lead to unnecessary losses later on.

In this article, we outline 7 of the greatest car care sins you are committing and how you can redeem yourself.

1. Irregular Cleaning

Some people are obsessed with cleaning their cars, and kudos to them. Then there are those who go on and on without bathing their car. This is not only unsightly, but dirt, air-borne pollutants, bugs, bird shit, and mud can damage the paint and dull your car’s finish.

How often you wash your car will depend on several factors. For instance, if you use it to ferry vegetables from the market every day, you may need to wash it a couple of times a week. If you only use it to get to the office, you may clean it once in two weeks.  Other factors such as the type of road you use, how far you drive, and the weather may also influence how often you need to wash your car.

Washing your car doesn’t have to be an expensive affair. You can actually clean it at home (fun activity to do with kids) or take it to the neighborhood car wash. We all know that in Nairobi, you will find a car wash for 200 bob or one for 1000 bob depending on where you go, and your budget. Aim to do a thorough general cleaning every few months.

2. Littering

If you are a parent with small children, it is possible that after the end of a long trip, your car will resemble a mini trash can. Think half-eaten bananas to potato crisps wrappers and empty water bottles. If this happens, aim to clean the car immediately after the trip. Don’t wait to look for an elusive smell of something ‘strange’ a week later!

Similarly, every day littering of one item at a time can accumulate over the week. Always carry out trash with you when you get out of the car. Another way of mitigating this is by investing in a bin that can be placed behind the front seats. You can also carry a disposable bag in the glove compartment to make trash collection and clean up easier.

We are advocating that you don’t leave trash in your car, but we don’t mean that you throw it out your window! You all have seen  the guy in front who goes littering all the way home, throwing out banana peels and pet water bottles with careless abandon. As suggested, invest in a bin, or use a disposable bag to carry your trash home. Let us care for our cars, but also for the environment.

3. Sun exposure

There are months of the year when the sun can be brutal. Imagine how much damage the sun’s UV rays make on our skin and the lengths we go to protect ourselves. Now think of your car, out there in the sun, day in day out. It may not always be possible to park under a shade, particularly in towns such as Nairobi. However, the sun does not only damage the exterior of the car but the interior as well. The dashboard, leather seats, and other plastic surfaces can age prematurely due to overexposure to the sun. This can affect your car’s resale value and aesthetics.

To redeem yourself of this sin, cover your car’s plastic surfaces, particularly the dashboard area, with a sun protector. Aim to apply protectants to the leather and vinyl surfaces occasionally to keep them in tip-top shape.

4. Ignoring dents and scratches

If you have driven on the somewhat chaotic Kenyan roads, your car may have a few scratches and dents to show for it.  Between our crazy matatu culture and all those bodabodas, it may be hard to escape unscathed. What is unacceptable and a major sin is ignoring these dents and scratches like they are not there!

No matter how cool your car is, a dent immediately makes it appear old and ugly. But the good news is, most dents and scratches can be repaired with easy DIY (do it yourself) hacks.

For example, if the dent does not have a crack in it, use a toilet plunger to suck it right out! Alternatively, pour hot water over it and see it pop right back to shape. If you have a scratch that is not too deep in, rub it over with toothpaste using a damp cloth. If these hacks don’t work, it means that the damage is too deep, and you may need to call in a professional.

5. Skipping car service

Do you remember that episode of Big Bang Theory where Penny and Sheldon are driving together in her car, and he points out that her check engine light is on? ‘Oh, I have been meaning to put gum on that,’ she responded.

Haha. Some of us are a little like Penny. We know the rules. The manufacturers recommend that we service our cars every 10,000kms, or six months, whichever comes first. And some of us faithfully do it.

It is the rest of us that are committing grave sin number five. We imagine that since we don’t hear any ‘funny’ noises or see any warning lights on the dashboard, all is well. While it may be well in the short term, it could end up costing you significantly in the long run in case of any mechanical failures.

To redeem yourself, service your car regularly as required. Don’t wait six months to do the basics like changing engine oil and replacing air and oil filters.

Remember, when you love your car, it will love you right back and serve you faithfully!

Once you have decided to purchase a car, one of the most difficult decisions you have to make is whether to import or buy one locally. The biggest question on your mind at this point is, ‘what will I gain or lose either by buying locally or importing?” As car dealers, we understand that each option has its advantages and disadvantages, but we acknowledge that in the end, you should go with what works best for you. It does help, however, to have all the information. In this article, we hope to make your decision simpler by discussing the merits and demerits of importing a car or buying one locally.

What are the Advantages of Importing a Car from Japan?

Importing a car from Japan has numerous advantages, some of which include:

A Large Pool of vehicles to choose from

When you import your car from Japan, you will benefit from the availability of thousands of cars in the auctions. This means that you can get a car fitting your specifications, such as make, model, color, mileage, interior, and most importantly, price. This is unlike at a local yard where you might have to choose between four of five vehicles of the model you want.

 Value for your money

Countries like Japan have well-maintained roads and carefully used vehicles. Even if you import a 7-year-old vehicle, it is likely to be in superb condition. This means that you can even import a vehicle with slightly higher mileage for a lower price and still end up with a car that will serve you diligently for several years.

A smooth Buying Process

Buying a car locally can be a tedious process, especially when you are looking for particular specs. This is because you will have to move from one yard to another while making a million calls in between. Why not save that energy and import? When you use a reliable import agent, they will do all the work of finding the right car for you, including shipping, clearing, and registration. All you have to do is pay and sit back and wait for your vehicle to arrive without any hustles. 

 Latest Number Plate

When your car arrives at the port of Mombasa, it will be registered as a new car by the NTSA. This means that you will get the latest number plate on the road. You can also book (at an extra fee) for a special number plate, such as triple letters.

Whole History of the car

The Japanese are stringent in their car inspections. Every car available in the auction has an auction sheet. The auction sheet gives the history and the general condition of the car. Once a car is imported from Japan, you can have it physically inspected and find that it matches exactly what was in the auction sheet.

Genuine Mileage

The auction sheet also outlines the mileage of the car. The mileage is genuine and verifiable by using the chassis number to check once the car has been purchased and inspected by QISJ or other bodies contracted by KEBS.

Cars with Unique Features

With the auction having a large pool of vehicles, one can choose a car with extras that they admire, think of things like a roof rail, fancy lights, unique colors, etc.

Are there any Disadvantages to Importing a Car from Japan?

Like everything else, importing does have some angles that might be considered disadvantageous, depending on where you stand. Some of them are:

You may have to wait longer

To import a car from Japan takes around 6-8 weeks. If you want your car immediately, the waiting period might put you off.

It may cost slightly more

Sometimes importing can be considered expensive compared to buying a car locally. This mostly happens due to exchange rate fluctuations. Similarly, low mileage cars will be more costly than high mileage cars.

There could be Unforeseen Delays

The car import process takes around 45-60days, but there could be other unforeseen delays. These mainly happen at the port of Mombasa, either with KRA or NTSA systems. Occasionally there have been challenges with the availability of physical number plates.

What are the Advantages of Buying a Car in the Local Car Yards?

Immediate Purchase

When you realize that you don’t have bread in the house and you need it for breakfast, all you have to do is rush to the local kiosk or supermarket to get one. You will find bread from different companies on the shelves, and you will settle for the one you prefer. The point is, your need is satisfied immediately, which is similar to buying a car locally. If you need a car in a hurry, all you have to do is visit various car yards and pick one.

Physical Inspection

When you import a car from Japan, you will rely on an auction sheet to give you information on the car. When the car is locally available, you will walk into the yard or showroom to look at the car. You will be able to touch it, feel it and even test drive it.

Ability for Comparison

There are thousands of yards in Kenya, most of them located in Nairobi and Mombasa and set closely together. This gives you a perfect chance to ‘window shop.’ If what is found in one yard does not appeal to you, you can shop in other yards until you find what you are looking for.

Import Financing

The majority of the banks or financial institutions in Kenya prefer to finance cars already in the country. Buying a car from a local yard means that you can secure bank finance quickly, compared to the process of importing.

Are there any Disadvantages to Buying a Car from the Local Yards?

The Mileage Question

Well, not everyone you deal with will be above board, and some unscrupulous dealers may alter the odometer to make a car look more attractive. A car could have a genuine mileage of 180,000km, but someone may be tempted to rewind it to 80,000km to make it more marketable. Unfortunately, it may be difficult to verify mileage in a car that is already here.  With an imported car, it is easier to know the car’s genuine mileage using the chassis number.

History of the car

When you intend to purchase a car, you move from one yard to another, looking for something that will suit your specifications. Once you find exactly what you want or something close to it, then you make an offer. But face value only does not give you the history of the car. Even an accident repaired car may look good to you.

Expenses

A car in the yard needs to be maintained to be in good condition once you come to view it. The yard may incur extra costs related to this, including security, buffing and cleaning costs, etc. Sometimes these service costs are transferred to the customer.

If you are planning to import a car from Japan, the UK, or elsewhere, one of your biggest concerns will be the cost. There is the actual cost of buying the vehicle, often referred to as CIF (Cost, Insurance & Freight) in import lingo. Basically, this covers the value of the car to the port of Mombasa.  This part is easy to understand, but it is the second part that most people find complicated and even confusing- import taxes.

How exactly do import agents arrive at the taxes payable? In this article, we will break down exactly how car import taxes in Kenya are calculated.

The Kenya Revenue Authority (KRA) is the body tasked with determining how much taxes you pay for importing a car, and to whom these taxes are paid.

KRA uses what is called a Current Retail Selling Price (CRSP), a database that lists the showroom (brand-new) costs of various models of cars. The CRSP prices are what form a basis of taxing second-hand imports based on a depreciation model.

Please note- you will not pay taxes based on how much you paid for your car  (purchase invoice) but rather, by the CRSP.

Before we explain how CRSP depreciation works, it is important to note that other factors will affect the total cost of a used car. These include:

• Make- e.g., Subaru, Toyota, Nissan
• Model- e.g., Forester, Prado, Juke
• Year and month of manufacture, e.g., Nov 2014
• Engine transmission- e.g., automatic, manual
• Engine capacity-e.g. 1600cc, 1800cc, 2000cc
• Fuel type- e.g., petrol, diesel
• Class – e.g., wagon, hatchback, sedan

CRSP Depreciation

For vehicles manufactured between 2017 and 2019, KRA depreciates the CRSP price of the respective car by 5% per year  to arrive at the customs value.

For vehicles manufactured between 2020 and 2024, KRA depreciates the  CRSP price of the respective car by 10% per year to arrive at the customs value.

For instance, if you import a 2017 Mazda CX5, the CRSP price will depreciate by 65%, the year 2018 will depreciate by 60%, 2019 by 55%, and so forth. This means that unlike other countries, in Kenya, the older a car is, the lower the taxes and the newer a vehicle is, the higher the taxes.

The customs value we mentioned will then be subjected to several charges as follows:

• Import duty- 35%
• Excise value- 25% + import duty
• Value added tax – 16% + import duty + excise duty
• IDF (Import declaration fee)-3.5%
• Railway Development Levy-2%
• Additional charges- Marine Levy & Radiation Check

Let us look at a practical example. Let us say you want to import a 2000cc, petrol engine, 2017 Mazda CX5. This is how your import duty will be calculated.

This means the total import duty you will pay for a 2000cc 2017 Mazda CX5 is 752,375KES.

***These figures are meant as a guideline and are not absolute. KRA may change the CRSP without notice.

Metallic Blue Mazda CX5

Other Importation Costs

Now that you have an idea of how KRA arrives at taxes, it is time to look at other costs that you will incur at the port of Mombasa. These include:

• • Port charges– This is paid to the CFS (container freight station) where your car is being stored and varies based on the size of your vehicle
  • Shipping– This is paid to the shipping line that shipped your car
  • Registration fee– Paid to NTSA for registration & physical plates
  • Import agency fee– This is the fee agreed upon with your import agent for handling the whole import process on your behalf.
  • Clearance fees– Fees paid to the clearing & forwarding company that will clear your car from the port
  • Transportation to your location (either by road or car carrier)- You can choose to drive your car/ have it driven from Mombasa or use a car carrier
  • Insurance– This will be issued by your preferred insurance agent. We recommend that you get Comprehensive insurance

If you are looking to import a clean, low mileage vehicle  from Japan hassle free, speak to us today!

Is My Car Safe at the Port of Mombasa as it awaits Clearing?

This is one of the most common questions we get from clients who import cars from Japan to Kenya through us.

And it is a valid one. If you import a car through us, you can be sure that your car is safe at the port.

When cars arrive at port of Mombasa, they are offloaded and taken to respective terminals. At Croton Motors, we nominate all our cars to the Regional Logistics Center Terminal (RLC).

Regional Logistics has been in business for close to 20 years. This means that they have the experience and logistics required to ensure smooth processes.

RLC has a large yard that can hold up to 1500 vehicles. It is secure, and vehicles are handled by a professional team of drivers.

– Because we nominate this terminal specifically, we enjoy 45 days of free storage. This means that even in cases of unexpected delays you are unlikely to incur demurrage charges. Cars that are not nominated to any terminal have only a 3 day free facility.

As seen above, you have no reason to worry about your car’s safety while at the port of Mombasa- well, as long as you import with Croton Motors! We can’t speak for the other guys!

Let us help you find the right car for you!