A Kenyan garage typically holds several million shillings in fixed assets: hoists, compressors, diagnostic tools, welders, spray booths, office equipment.

Yet most garages have no asset register. They do not know what they own, what it is worth, or when it needs replacing.

What counts as a fixed asset

A fixed asset is something you use to run the business, lasting more than one year, that is not sold to customers.

For a garage:

Vehicle lifts and jacks
Diagnostic scanners
Compressors and air tools
Welders and cutting equipment
Spray booths and paint mixing stations
Tyre machines and balancing equipment
Tool cabinets and hand tools (higher-value sets)
Office equipment, computers, and software
Delivery or pickup vehicles

Consumables like oil, filters, and rags are not fixed assets. They are expenses.

Why you need an asset register

An asset register does five things:

Tracks what you own
Records the purchase date and cost
Calculates depreciation for tax purposes
Schedules maintenance
Helps you plan replacements and budget for them

Without one, you are guessing.

Depreciation

KRA allows tax deductions on asset depreciation at specific rates. Common categories for garages:

Computer hardware and software: 33.3 percent per year (3-year life)
Vehicles: 25 percent per year
Plant and machinery (lifts, welders, diagnostic equipment): 12.5 percent per year
Furniture and fittings: 12.5 percent per year

You claim this depreciation on your annual income tax return. Without an asset register, you cannot claim it accurately.

Tracking maintenance

Every asset needs scheduled maintenance. Lifts need annual inspections. Compressors need oil changes. Diagnostic tools need software updates.

Log these in the asset register with next-due dates.

Planning replacements

An asset approaching the end of its useful life should have a replacement plan. Lifts typically last 15 to 20 years. Diagnostic tools last 5 to 8. Compressors last 10 to 15.

Budget a replacement fund monthly. Set aside a small percentage of revenue for asset renewal.

When to repair vs replace

The rule of thumb: if annual repair cost exceeds 40 percent of the new replacement cost, replace it.

For example, if a compressor costs KES 200,000 new and is costing you KES 85,000 a year to keep running, replace it.

Insurance

Every fixed asset should be insured. A fire, theft, or flood can wipe out years of investment in one night.

Review coverage annually. Values go up over time. Under-insured assets are a common mistake.

How Gariclaim helps

Gariclaim includes a fixed asset register that tracks purchase dates, cost, depreciation, and maintenance schedule. Depreciation is calculated automatically and flows into your financial statements.

The adjusting entries for depreciation are generated at year end without manual journal entries.

Start a free trial and finally know what you own.

Fixed Asset Management for Garages: Tools, Lifts, and Diagnostic Equipment