Factors Affecting the Performance of Secondhand Motor Vehicle Importers in Nairobi, Kenya.

Abstract

Kenya aims to achieve industrialization by year 2030 (Kenya Vision 2030). If this is to be realized then more vibrant and efficient firms and industries need to be created which will help reduce poverty through employment creation. Secondhand Motor vehicle importers contribute significantly to the country's economy. This is through payment of taxes (such as import duty, VAT), employment creation among others. They also create enormous opportunities for job creation through value addition like in Motor Garages, spare parts etc. However despite the enormous role they play in the economy, this industry is faced by numerous challenges that affect their performance. These include competition, lack of skills in Management and regulatory frame work. According to (Kenya motor industry report, 2007) many second hand Motor Vehicle dealers have closed down due to stiff competition in the market brought about by market liberalization. Most of these Importers are also members of Kenya Auto Bazaar Association (KABA) and include both dealers selling their vehicles in both open shed (Jua kali) and in closed premises. The study sought to investigate the effect of competition, lack of training in management skills, change in customer tastes and existing regulatory frame work in the performance of second hand motor vehicle importers in Nairobi, Kenya. The study design was descriptive research design. The target population was all the 225 registered second hand motor vehicle importers operating within Nairobi (Registrar of businesses 2010). A sample size of 30% of the population was selected at random (Orodho 2002). The data was collected from primary source, using questionnaires. Simple random techniques was used to come up with a representative sample size then analyzed using both qualitative and quantitative techniques. The data was presented in form of pie charts, Bar graphs, and frequency tables.