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Car Import Duty in Kenya: A Simple Guide for 2025
So, you've found the perfect car online from Japan or the UK, and the price looks fantastic. But then comes the big question: how much will it cost to actually get it on the road in Kenya? The single biggest factor is the import duty calculated by the Kenya Revenue Authority (KRA). It can seem complicated, but this guide will break it down for you in simple terms.
What is Car Import Duty?
Import duty is a tax levied by the government on goods brought into the country. For cars, it's not just one tax but a combination of three main charges, all calculated based on the vehicle's Customs Value.
Important Note: The Customs Value is NOT the price you paid for the car. It's the value determined by the KRA, based on the car's make, model, and year of manufacture, using their official Current Retail Selling Price (CRSP) list.
The Three Main Taxes You'll Pay
Import Duty (25%): This is the first main tax. It's calculated as 25% of the car's Customs Value.
Excise Duty (20% to 35%): This is a tax on top of the first tax. It is calculated on the (Customs Value + the Import Duty). The percentage varies:
25% for petrol engines up to 1500cc.
30% for petrol engines from 1501cc to 2000cc.
35% for petrol engines above 2000cc and for all diesel engines.
Value Added Tax - VAT (16%): The final major tax. VAT is calculated on the (Customs Value + Import Duty + Excise Duty).
As you can see, it's a tax on a tax on a tax, which is why the final figure can be surprisingly high.
Let's Look at a Simplified Example:
Imagine you want to import a car with a KRA-determined Customs Value of KES 1,000,000.
Import Duty: 25% of 1,000,000 = KES 250,000
New Total for Excise: 1,000,000 + 250,000 = 1,250,000
Excise Duty (assuming 25% rate): 25% of 1,250,000 = KES 312,500
New Total for VAT: 1,000,000 + 250,000 + 312,500 = 1,562,500
VAT: 16% of 1,562,500 = KES 250,000
Total Taxes Payable = KES 250,000 + KES 312,500 + KES 250,000 = KES 812,500
This is a simplified calculation. Other smaller fees like the Railway Development Levy (RDL) and Import Declaration Fee (IDF) also apply.
Key Rules to Remember:
Age Limit: You cannot import a car that is more than 8 years old from its year of first registration. For example, in 2025, you can only import cars manufactured in 2018 or newer.
Right-Hand Drive: Cars imported into Kenya must be right-hand drive (RHD).
The Easiest Way to Handle Import Duty
While it's good to understand the costs, the process of calculating and clearing a car with KRA can be complex. The best approach is to work with a reputable clearing agent or a dealership that handles the entire importation process for you.
Want to import a car without the headache? At [Your Dealership Name], we offer a seamless end-to-end import service. We'll give you a clear, final landed price with all taxes and fees included. No surprises, no hidden costs. Contact us today to get a quote for your dream car!
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