KRA 2026 Compliant
Car Import Master
*CRSP is KRA’s benchmark price for new models
ESTIMATED TOTAL DUTY
KES 0
+ Approx KES 145,000 Port Charges
Customs Value (Value for Duty)0
Import Duty (35% or 0% for EV)0
Excise Duty (Fuel vs EV rates)0
VAT (16%)0
IDF (2.5%) + RDL (2.0%)0
How is Car Duty Calculated in Kenya? (2026 Formula)
Importing a car into Kenya involves a compounded taxation system. The Kenya Revenue Authority (KRA) doesn’t just tax the price you paid for the car; it uses the Current Retail Selling Price (CRSP) as the base for all calculations.
1. Determining the Customs Value
Before taxes are applied, KRA determines the Customs Value (also known as the CIF – Cost, Insurance, and Freight).
- Formula: $CRSP \times \text{Depreciation Factor} = \text{Customs Value}$
- The 8-Year Rule: In 2026, the oldest car you can import is from 2019. A 2019 model receives the maximum allowed depreciation of $65\%$ (meaning you are taxed on $35\%$ of its original value).
2. The Compounded Tax Formula
KRA applies taxes in a specific “ladder” sequence. Each tax is added to the previous total before the next tax is calculated:
- Import Duty: Standardized at $35\%$ of the Customs Value ($0\%$ for Electric Vehicles).
- Excise Duty: Calculated on $(\text{Customs Value} + \text{Import Duty})$. Rates vary by engine size (CC):
- $20\%$ for cars below 1500cc.
- $25\%$ to $35\%$ for larger engines.
- $10\%$ for Electric Vehicles (EVs).
- Value Added Tax (VAT): $16\%$ calculated on $(\text{Customs Value} + \text{Import Duty} + \text{Excise Duty})$.
- IDF & RDL: * Import Declaration Fee (IDF):$2.5\%$ of Customs Value.
- Railway Development Levy (RDL): $2\%$ of Customs Value.
Summary Table for 2026 Rates
| Tax Type | Rate (Petrol/Diesel) | Rate (Electric/EV) |
| Import Duty | $35\%$ | $0\%$ |
| Excise Duty | $20\% – 35\%$ | $10\%$ |
| VAT | $16\%$ | $0\% – 16\%$ (Varies by model) |
| IDF | $2.5\%$ | $2.5\%$ |
| RDL | $2\%$ | $2\%$ |