Home INFOMATIVE Best monthly salary in Kenya that can sustain a personal car

Best monthly salary in Kenya that can sustain a personal car


If you want to comfortably own and drive your personal car, there is a specific income you should earn in Kenya.I got this good question from our reader which I wanted to share with you.

“I am currently earning Ksh 100,000 and living in Nairobi. My net income is Ksh 70,000. I pay monthly rent of Ksh 18,000. At the end of every month, I remain with Ksh 25,000. This is the money I save. Now my question, am I eligible to own my personal car?”


The Ksh 25,000 is not enough to sustain your car and remain with some cash to save. Unless you don’t want to save any money, do not buy a car.

If you buy a car with lowest CC, say 1200 CC, you will spend fuel of Ksh 12,000 to Ksh 20,000 per month. You will be paying annual insurance of at least Ksh 30,000. You also need money for servicing the car. Ideally, your entire Ksh 25,000 will be spent on feeding the car. Generally, owning a car is a liability.

If you are comfortable with using matatu, you will save more than Ksh 20,000 monthly. If you save this money in Money market Fund. You will earn a profit of more than Ksh 30,000 annually. Assuming that you save Ksh 20,000 monthly, in 5 years, your total savings will be above Ksh 1.5 million. You can use this money to build your house or buy a plot.

The best salary to own a car in Kenya

To comfortably own a car in Kenya, your monthly salary should be Ksh 150,000 and above. With Ksh 150,000 gross salary, your net salary will be Ksh 110,000. You can buy a car on loan worth Ksh 800,000. The CC of the car should not exceed 2,000.

With a net salary of Ksh 110,000, your rent will be Ksh 20,000, other expenses will cost Ksh 50,000. You will remain with Ksh 40,000. Fuel will cost Ksh 20,000. You will still remain with Ksh 20,000 to save.

Khalif Kairo sells cars in Nairobi. He explains to us who should own a car in Kenya

“Most of my clients make Ksh 100,000 and above. Of course I have clients who make way below Ksh 100,000, they are few. Majority of these (earning below 100k) are first time car owners—they don’t know the expenses of maintaining a car. They will purchase a car today and after a couple of months, they contact us inquiring whether we can buy the car back. Majority of them buy the cars on loan.

For experienced car owners, a number of them are earning above Ksh 300k.These ones don’t have issues with paying for the car and running it because they know a lot about cars.

I would advise Kenyans earning below Ksh 200,000 per month not to own cars. A car is a liability and it requires enough cash flow”.

Best car to own in Kenya based on CC

The higher the CC of a car, the more expensive the car. Below is a list of the best cars to own in Kenya based on CC

Ksh 100,000 salary—1200 to 1500CC

Ksh 200,000 salary—-1500 to 2000 CC

Ksh 300,000 salary—-2500 to 3000 CC

Ksh 400,000 salary and above—Above 3000 CC

Source link