If you’ve walked through the car bazaars along Ngong Road or scrolled through online listings recently, you’ve likely felt it: “The Great Squeeze.” Finding a reliable used car in Nairobi has always been an exercise in patience, but in 2026, it has become a true test of the wallet. Prices for popular “mwananchi” models have hit record highs, leaving many prospective buyers wondering where the affordable units went.
This price surge isn’t just a random fluctuation; it is the result of a “perfect storm” of new tax laws, strict import regulations, and shifting economic realities. Here is a detailed look at why your next car might cost significantly more this year.
1. The Death of the 2018 Model
The primary driver of the current price hike is the strict enforcement of the 8-year age limit. As of January 1, 2026, the Kenya Bureau of Standards (KEBS) has moved the goalposts. Only vehicles first registered in 2019 or later are now eligible for importation.
This change effectively removed 2018 models—the previous “sweet spot” for budget-conscious importers—from the menu. Because 2019 models are newer and often come with more advanced features, their base price in Japan or the UK is naturally higher. When you add shipping and the new 2026 clearing costs, the “entry-level” price for a fresh import has jumped by an average of Sh250,000 to Sh400,000.
2. The New KRA “Invoice-Based” Tax System
For years, the Kenya Revenue Authority (KRA) used the Current Retail Selling Price (CRSP) as the benchmark for taxation. However, 2026 marks the full implementation of the Invoice-Based Valuation System. While intended to be more transparent, the new system—combined with an import duty rate that now stands at 35% (up from 25% in previous years)—has pushed the total tax burden higher for many popular models.
Popular fuel-savers like the Mazda Demio and Toyota Vitz have seen their total duty increase significantly. For example, a 2019 Demio that might have cost Sh1.1 million to land two years ago is now pushing toward the Sh1.6 million mark.
3. Scarcity in the Local Market
With the cost of fresh imports rising, more buyers are turning to the “locally used” market. This surge in demand for cars already on Kenyan roads has created a secondary squeeze. Owners of well-maintained Toyota Fielders or Subaru Foresters are now asking for—and getting—prices that are nearly identical to what they paid for the cars three years ago.
To find second-hand cars suitable for these conditions without the “import headache,” check out auto24.co.ke. You can still find quality-verified units like the Nissan Note or Toyota Passo that offer a balance between modern features and local affordability. Buying locally via AUTO24 allows you to avoid the volatility of the 2026 import clearing process.
4. The “Green Transition” Ripple Effect
As the government pushes for more eco-friendly transport, traditional internal combustion engine (ICE) vehicles are facing “environmental levies” that weren’t there before. For drivers looking to explore sustainable mobility and bypass some of these “petrol penalties,” EV24.africa offers import options for electric cars, expanding choices in a market where charging is becoming cheaper than fueling.
While EVs are the future, the current transition phase has made “last-of-their-kind” reliable petrol cars more expensive as people scramble to hold onto familiar technology. For more on how these shifts are affecting car reviews and regional trends, autoskenya.com provides the latest automotive news tailored for Kenyan enthusiasts.
Essential Maintenance Tips to Protect Your Investment
Since you are likely paying a premium for your car in 2026, protecting its resale value is more important than ever. Follow these actionable tips:
- Stick to the 5,000km Rule: With the rising cost of parts, preventative maintenance is cheaper than repair. Use high-quality synthetic oils available at reputable stations.
- Logbook and Records: A car with a full service history can fetch up to 15% more on the resale market. Keep every receipt.
- Suspension Care: Nairobi’s “pothole season” is brutal on the newer 2019+ imports which often have lower ground clearance. Inspect your bushes and shocks every six months.
- Cooling System: Newer engines run hotter to improve efficiency. Ensure you use the correct coolant—never use plain water in a 2019+ radiator.
Discover additional tips on prolonging your car’s life.
Looking Ahead: Is Relief in Sight?
While the “Great Squeeze” is painful for buyers, there is a silver lining. The high cost of imports is finally making local assembly competitive. As more brands begin to assemble cars in Mombasa and Thika, we expect to see “Zero-Mileage” local options becoming a viable alternative to “8-year-old” imports.
Until then, the best strategy is to stay informed. Whether you are reading up on automag.co.ke or hunting for a deal on auto24.co.ke, being a savvy buyer is the only way to beat the 2026 squeeze.
