Several duties and taxes are applicable when importing a vehicle into Kenya.
Many Kenyans dream of owning vehicles. Whether brand-new models or reliable second-hand car, understanding the importation process is crucial for a smooth transaction.
Importing a vehicle involves several steps, including compliance with regulatory standards, engaging a licensed clearing agent, and navigating various duties and taxes.
To clear your vehicle through Kenya Customs, you must contract a licensed clearing agent who will facilitate the entire process.
The clearing agent is responsible for lodging an import entry in the Kenya Revenue Authority (KRA) system, paying the required duties and taxes, and presenting all relevant documents for Customs clearance.
Compliance with standards
Before your vehicle can be cleared, it must meet the Kenya Bureau of Standards’ KS 1515:2000 – Code of Practice for Inspection of Road Vehicles. This code outlines three major criteria:
- Age limit: The vehicle should not be more than 8 years old from the year of manufacture (i.e., the year of first registration).
- Left-hand drive restrictions: All left-hand drive vehicles are prohibited from registration unless they are for special purposes, such as ambulances, fire tenders, or large construction vehicles imported for specific projects and eventually donated to the Kenyan Government.
- Roadworthiness: All used vehicles imported into Kenya must undergo inspection to ensure they meet roadworthiness, safety, and other specified requirements.
Duties and taxes payable
Several duties and taxes are applicable when importing a vehicle into Kenya:
- Import duty: Charged at 35% of the Customs Value (CIF), which includes the invoice value, insurance, and freight charges.
- Excise duty: This varies based on the engine capacity:
- 20% for vehicles with engine capacities of 1,500 cc and below
- 25% for vehicles with engine capacities above 1,500 cc
- 35% for vehicles with engines exceeding 3,000 cc
3. Value-added tax (VAT): Charged at 16% of the sum of customs value, import duty, and excise duty.
4. Rail development levy: 2% of the Customs Value (CIF).
5. Import declaration fee (IDF): 3.5% of the Customs Value (CIF).
Example calculation
To illustrate how these duties and taxes are calculated, let’s consider a Toyota Auris with an engine capacity of 1800 cc, manufactured in January 2017. Here’s how the costs break down:
- Current retail selling price (CRSP): Sh2,355,704
- Cost insurance and freight (CIF): Sh623,855.40
- Import duty (35%): Sh218,349.39
- Excise duty (25%): Sh194,954.81
- VAT (16%): Sh155,963.85
- IDF payable (3.5%): Sh21,834.94
- Railway levy (2%): Sh12,477.11
The total duties payable for this vehicle would amount to Sh603,780.10
