Importing a car into Kenya can be significantly cheaper than buying locally — but only if you understand the taxes, duties and clearance procedures involved.
Many first-time importers underestimate the final cost because they focus only on the purchase price abroad. In reality, taxes and compliance charges can account for more than 50% of the vehicle’s value.
Here is a complete breakdown of how the process works and what you are likely to pay.
Step 1: Confirm the vehicle meets Kenya’s import rules
Before purchasing, ensure the vehicle complies with Kenya Bureau of Standards (KEBS) regulations.
Key requirements include:
- The car must not be more than 8 years old from the year of first registration.
- It must be right-hand drive.
- It must pass a pre-export inspection by an approved inspection company (such as QISJ, JEVIC, or Auto Terminal Japan depending on country of origin).
- It must meet minimum roadworthiness and safety standards.
Failure to meet these rules can result in rejection at the port.
Step 2: Understand how duty is calculated
Kenya calculates taxes based on the Current Retail Selling Price (CRSP) published by the Kenya Revenue Authority (KRA) — not necessarily the price you paid abroad.
The tax formula includes:
Import Duty – 25% of Customs Value
Excise Duty – 20% (for vehicles up to 1500cc) or 25% (for vehicles above 1500cc)
VAT – 16% of the total (Customs Value + Import Duty + Excise Duty)
There is also:
Import Declaration Fee (IDF) – 2.5% of customs value
Railway Development Levy (RDL) – 2% of customs value
Customs Value is calculated using CIF (Cost + Insurance + Freight).
Example: Importing a 1500cc Car
Assume:
CIF value = KSh 1,000,000
Import Duty (25%) = 250,000
Excise Duty (20%) = 250,000
Subtotal = 1,500,000
VAT (16%) = 240,000
Total taxes = 740,000
Plus:
IDF (2.5%) = 25,000
RDL (2%) = 20,000
Total government charges = approximately KSh 785,000
Final landed cost = around KSh 1.78 million
That means taxes alone can add nearly 80% to the CIF value.
For vehicles above 1500cc, the cost rises significantly due to higher excise duty.
Step 3: Clearing the Vehicle at the Port
Once the car arrives at the Port of Mombasa:
- Submit documents through the KRA iCMS system.
- Pay all assessed duties and levies.
- Obtain a release order.
- Register the vehicle with NTSA.
- Pay registration and number plate fees (approximately KSh 30,000–50,000 depending on plates and services).
Many importers use a licensed clearing agent, who typically charges between KSh 20,000 and KSh 50,000 depending on the vehicle.
Additional Costs to Consider
Shipping costs from Japan typically range between KSh 120,000 and KSh 200,000 depending on size and season.
Marine insurance may cost 1–2% of vehicle value.
Port storage charges apply if clearance delays occur.
Transportation from Mombasa to Nairobi can cost KSh 15,000–40,000.
Hybrid and Electric Vehicles
Hybrid vehicles enjoy reduced excise duty rates compared to conventional petrol vehicles, making them increasingly attractive.
Fully electric vehicles benefit from even lower excise duty (as low as 10%), though VAT and import duty still apply.
This makes EV imports slightly more tax-efficient compared to traditional combustion engine vehicles.
Is Importing Still Worth It?
Importing remains cost-effective for:
- High-spec Japanese units
- Hybrid vehicles
- Models with limited local availability
However, the total tax burden means buyers must calculate carefully before committing.
A vehicle purchased for KSh 900,000 abroad could easily cost KSh 1.6–1.8 million after taxes and clearance.
Final Advice
Before importing:
- Check the KRA CRSP list for your vehicle model.
- Calculate full tax liability.
- Confirm compliance with KEBS rules.
- Work with a reputable clearing agent.
Importing a car into Kenya can be financially rewarding — but only if you understand the duties, taxes and hidden charges involved.
