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Subaru Kenya Accused Of Overpricing Forester, Outback Brands

Subaru Outback

Subaru Outback in display at the KICC grounds. [PHOTO/ SUBARU KENYA]

Subaru Kenya, operated by Ecta holdings, has been accused of overpricing their units, especially the Outback and Forester Brands.

According to purchase sheets in our possession, the units are acquired cheaply from Japan but the prices are exaggerated upon landing in the showrooms

For instance, Subaru Kenya currently sells a new Forester for Ksh6.2 million on the basic one and high spec for Ksh7.2 million. An Outback is retailing at Ksh9.5 million.

The landing cost of a Subaru Outback is between Ksh3.2 million and Ksh3.4 million, depending of the specifications and year of make.

A Subaru Forester’s landing cost can go to as low as Ksh2.1, for a brand new one.

A snippet of units imported by Subaru Kenya and their costs in Japanese Yen.

“(Subaru Kenya) has been a trend of putting ridiculous mark ups which only the management – MD Mr John Troughton ,his wife Brigit ,general manager Naftali Mwangi and Sales Manager Peter Kimathi share the spoils,” says an inside source.

Our source says that the profit margins are so high but employees are poorly paid with the management claiming that the company is running on losses.

The managing director is said to be collecting cash weekly from spare parts sales department and later on writes a personal cheque to reimburse the cash collected.

“Accounts department can’t say anything since they are scared of exposing the rot in here. The other directors of the company aren’t aware of most dealings regarding squandering of company cash. The clients are paying much for no reason at all,” adds our source.

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Written by Kahawa Tungu


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