Cheap kits dried up long ago. US produced AKs suck bubblegum. So you are stuck with new production from former soviet blocks who still have the old machinery, which is wearing out. Costs of everything from labor to materials to shipping have gone up 2-3x in the last twenty years. Inflation. Lower production numbers due to countries moving towards AR and similar 5.56 rifles.I've been puzzled by the prices of AKs in recent years. Admittedly, it is not a market I follow, for a variety of reason. With a few notable exceptions, I wouldn't consider them "garbage guns" by any stretch, but I am not getting how the prices for them has increased so dramatically compared to back in the day.
That's why an AK is expensive.