📅 Category: Financing & Ownership | By: Clyde Motors KE | ⏱ 5 min read
Buying a car is one of the most exciting purchases you will make. But for many first-time car owners in Kenya, the excitement fades a little when the costs beyond the purchase price start arriving. Insurance renewals, service bills, fuel, tyres — these are expenses that can catch you off guard if you have not planned for them.
At Clyde Motors, we believe an informed buyer is a happy owner. So before you drive off the lot, here is an honest breakdown of every significant cost you should budget for when owning a car in Kenya.
1. Comprehensive Insurance
This is the biggest recurring cost most car owners face after their loan repayment. Comprehensive insurance in Kenya typically costs between 4% and 7% of the vehicle’s value annually, depending on the insurer, the vehicle type, and your claims history.
For a vehicle valued at KES 2,000,000, that translates to KES 80,000 to KES 140,000 per year — or roughly KES 7,000 to KES 12,000 per month. Third-party insurance is significantly cheaper but covers only damage you cause to others, not damage to your own vehicle. If you have a loan, your lender will require comprehensive cover.
Planning tip: Get at least three quotes from different insurers every renewal period. Premiums vary significantly between providers for the same vehicle and coverage level.
2. Annual Road Licence (Road Tax)
Every vehicle in Kenya requires a valid road licence issued by the Kenya Revenue Authority. The cost varies by engine capacity and vehicle type but typically falls between KES 3,000 and KES 15,000 per year for most private passenger vehicles.
It is a relatively modest cost but one that must be paid on time — driving without a valid road licence is an offence and will create problems at police checkpoints.
3. Routine Servicing
Regular servicing is not optional — it is the single most important thing you can do to protect your vehicle’s reliability and resale value. A standard service for most Japanese used cars in Kenya includes an oil change, oil filter, air filter, and general inspection. Depending on the vehicle and the garage, expect to pay between KES 5,000 and KES 20,000 per service.
Most vehicles require servicing every 5,000km to 10,000km depending on the manufacturer’s recommendation and the type of oil used. For a driver covering 2,000km per month, that means roughly two to four services per year.
Planning tip: Use a reputable garage with experience on your specific vehicle model. Cheap servicing that uses substandard oils or skips steps ends up costing far more in repairs.
4. Tyres
Tyres are a significant and often underestimated cost. A set of four tyres for a mid-size SUV in Kenya can cost between KES 40,000 and KES 100,000 depending on the brand, size, and type. Quality tyres from reputable brands like Bridgestone, Michelin, or Dunlop are more expensive upfront but last longer and are safer.
Most drivers need to replace tyres every 40,000 to 60,000km with normal use. If you drive on rough roads frequently, expect this interval to shorten.
Planning tip: Set aside a small monthly amount specifically for tyres. Treating it as a lump sum surprise is the wrong approach — it is a predictable expense.
5. Fuel
This is your most frequent and visible running cost, and it varies enormously based on your vehicle’s fuel efficiency and how much you drive. A petrol SUV averaging 12km/L and covering 2,000km per month will consume approximately 167 litres of fuel monthly. At current Nairobi pump prices, that is a substantial monthly outgoing.
Planning tip: When choosing a vehicle, factor in fuel efficiency as seriously as you factor in the purchase price. A slightly more expensive hybrid vehicle can pay for its price premium through fuel savings over three to four years.
6. Parking Fees
If you work or spend time regularly in Nairobi’s CBD, Westlands, Upper Hill or other commercial areas, parking fees add up meaningfully. Monthly parking in a managed facility in Nairobi ranges from KES 3,000 to KES 10,000 depending on location. Even street parking adds small daily costs that compound over a month.
7. Repairs and Unexpected Maintenance
No matter how reliable your vehicle, unexpected repairs are a reality of car ownership. A suspension component, a brake job, an electrical fault — these can arrive without warning and cost anywhere from KES 5,000 to KES 80,000 or more depending on the part and the vehicle.
Planning tip: Keep a car emergency fund. Setting aside KES 5,000 to KES 10,000 per month in a dedicated savings account means that when a repair bill arrives, it does not destabilise your finances.
Your Monthly Car Ownership Budget Checklist
Here is a simple framework to estimate your true monthly cost of ownership:
- Loan repayment (if financed)
- Insurance (annual premium divided by 12)
- Road licence (annual cost divided by 12)
- Fuel (estimated monthly consumption Ă— current pump price)
- Servicing (annual servicing cost divided by 12)
- Tyre reserve (set aside KES 3,000–5,000 monthly)
- Repairs reserve (set aside KES 5,000–10,000 monthly)
- Parking (if applicable)
Add these up and you have a realistic picture of what owning your specific vehicle will truly cost you each month — before you commit to the purchase.
The Bottom Line
Owning a car in Kenya is entirely manageable and tremendously worthwhile — but only when you go in with clear eyes about the full cost. The buyers who struggle are those who stretched to afford the purchase price without budgeting for the ongoing costs. The buyers who thrive are those who planned for everything upfront.
At Clyde Motors, we are always happy to walk you through the real ownership costs of any vehicle in our stock before you buy. We would rather you make a confident, well-informed decision than feel surprised six months down the road.
👉 Visit clydemotors.co.ke or WhatsApp us on 0740635621 to discuss the right vehicle for your budget