Nissan Kenya is projecting little improvement in sales this year, after a flat performance last year, due to the Government making few orders for cars.
The South African-owned car dealership whose biggest client is the Government, said perhaps there is little funding from The Treasury for State bodies to buy vehicles, and therefore the reason no orders from the State are coming in.
“Last year, things were tough with the election period and a stagnating economy. Matters have not improved that much this year, since the Government is our leading client and it is not placing orders. But we hope the future holds good prospects,” said Max De Wit Nissan East Africa Regional Manager. He was speaking yesterday in Nairobi during the Total Motor Show.
The Nissan head also affirmed that the wrangles that existed between shareholders of the car dealership were over, and the question whether Nissan would quit the Kenyan market was settled.
“There are no more wrangles and our partners are working well. Kenya serves the entire East African market and we are here to stay,” he said.
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The car dealership also hinted on plans to start an assembly plant in Kenya, though De Wit said the idea will take some time.
“We are looking at it and hope we can execute that idea in the near future,” De Wit said.
Nissan Kenya Managing Director Jabulani Ndabambi decried the high taxation measures undertaken by The Treasury in this year’s budget. He said they are going to be detrimental to Kenya’s motor vehicle industry.
Treasury Cabinet Secretary Henry Rotich slapped car importers with a 10 per cent excise duty. Ndambabi also affirmed that the Nissan brand will soon be launching its premier model the Nissan Navarra in Kenya.
