How Much Duty will I Pay to Import a Car to Kenya? How KRA Calculates Car Import Taxes

Posted on August 13, 2020 by Croton Motors

 

If you are planning to import a car from Japan, the UK, or elsewhere, one of your biggest concerns will be the cost. There is the actual cost of buying the vehicle, often referred to as CIF (Cost, Insurance & Freight) in import lingo. Basically, this covers the value of the car to the port of Mombasa.  This part is easy to understand, but it is the second part that most people find complicated and even confusing- import taxes.

How exactly do import agents arrive at the taxes payable? In this article, we will break down exactly how car import taxes in Kenya are calculated.

The Kenya Revenue Authority (KRA) is the body tasked with determining how much taxes you pay for importing a car, and to whom these taxes are paid.

KRA uses what is called a Current Retail Selling Price (CRSP), a database that lists the showroom (brand-new) costs of various models of cars. The CRSP prices are what form a basis of taxing second-hand imports based on a depreciation model.

Please note- you will not pay taxes based on how much you paid for your car  (purchase invoice) but rather, by the CRSP.

Before we explain how CRSP depreciation works, it is important to note that other factors will affect the total cost of a used car. These include:

  • Make- e.g., Subaru, Toyota, Nissan
  • Model- e.g., Forester, Prado, Juke
  • Year and month of manufacture, e.g., Nov 2014
  • Engine transmission- e.g., automatic, manual
  • Engine capacity-e.g. 1600cc, 1800cc, 2000cc
  • Fuel type- e.g., petrol, diesel
  • Class – e.g., wagon, hatchback, sedan

 

CRSP Depreciation

For vehicles manufactured between 2017 and 2019, KRA depreciates the CRSP price of the respective car by 5% per year  to arrive at the customs value.

For vehicles manufactured between 2020 and 2024, KRA depreciates the  CRSP price of the respective car by 10% per year to arrive at the customs value.

For instance, if you import a 2017 Mazda CX5, the CRSP price will depreciate by 65%, the year 2018 will depreciate by 60%, 2019 by 55%, and so forth. This means that unlike other countries, in Kenya, the older a car is, the lower the taxes and the newer a vehicle is, the higher the taxes.

The customs value we mentioned will then be subjected to several charges as follows:

  • Import duty- 35%
  • Excise value- 25% + import duty
  • Value added tax – 16% + import duty + excise duty
  • IDF (Import declaration fee)-3.5%
  • Railway Development Levy-2%
  • Additional charges- Marine Levy & Radiation Check

Let us look at a practical example. Let us say you want to import a 2000cc, petrol engine, 2017 Mazda CX5. This is how your import duty will be calculated.

Current Retail Selling Price4,495,000.00
Depreciation65%
Extra Depreciation0%
Customs value

723,333

Import Duty 35%  253,167              
Excise Value  976,500              
Excise Duty 25%  244,125     
VAT Value   1,220,625          
VAT 16%   195,300               
RDL 2%    14,467              
IDF Fees 3.5%    25,317         
Grand Total     752,375           

This means the total import duty you will pay for a 2000cc 2017 Mazda CX5 is 752,375KES.

***These figures are meant as a guideline and are not absolute. KRA may change the CRSP without notice.
Mazda CX5

Metallic Blue Mazda CX5

Other Importation Costs

Now that you have an idea of how KRA arrives at taxes, it is time to look at other costs that you will incur at the port of Mombasa. These include:

    • Port charges– This is paid to the CFS (container freight station) where your car is being stored and varies based on the size of your vehicle
    • Shipping– This is paid to the shipping line that shipped your car
    • Registration fee– Paid to NTSA for registration & physical plates
    • Import agency fee– This is the fee agreed upon with your import agent for handling the whole import process on your behalf.
    • Clearance fees– Fees paid to the clearing & forwarding company that will clear your car from the port
    • Transportation to your location (either by road or car carrier)- You can choose to drive your car/ have it driven from Mombasa or use a car carrier
    • Insurance– This will be issued by your preferred insurance agent. We recommend that you get Comprehensive insurance

If you are looking to import a clean, low mileage vehicle  from Japan hassle free, speak to us today!

 

 

187 comments on “How Much Duty will I Pay to Import a Car to Kenya? How KRA Calculates Car Import Taxes”

  2. Jac Maingi on

    Thank you for this information, i was so confused i thought i would calculate the taxes from the value i would have purchased the car. Let me ask what is estimate of importing a subaru forester? as in the whole process. Thanks in advance

    Reply
    • Croton Motors on

      HI Jac, thank you for your observation. We agree, KRA taxation can be tricky. Regarding your question- the price for importing a Subaru Forester will depend on factors like the year of manufacture, mileage and general condition of the car. Generally, we can import a 2014 unit at between 2.3m-2.5m depending. We currently have a 2013 unit at the port of Mombasa, blue in colour, 48,000km going for 2.3 million best price. You can view more details about it here: https://crotonmotors.tz/subaru/forester/vid-44-505-20678/. Let us know if you are interested in this one or in importing one in future. Feel free to reach out if you have any other questions

      Reply
    • Croton Motors on

      Hi Tyson, if you are tax exempt, then you do not pay duty to KRA. But in this case, a different set of documents is required to clear the car from Mombasa, based on the type of exemption you have. Kindly reach out if you need any further information on the same.

      Reply
      • dub sora on

        how much will be the cost of importing Toyota premio new model with the total charges of Kenya revenue authority tax and shipments

        Reply
  9. Mr. Brown on

    Thanks for the info it is so enlightening, kind request how much will it cost me to import a Volkswagen Golf 2.0 TDI station wagon 2014, thanks

    Reply
  10. Eric kinyua on

    I already talked to my dealer at thiland for a Ford double cab @ 19700$ engine size 3200 cc year/month 2014/ 4 diesel how would they tax me till I get that car

    Reply
    • Croton Motors on

      Hi Eric, please note as explained, your vehicle’s price does not factor in when calculating duty. What is important is the make, model, year and month of manufacture. Are you importing a Ford Ranger or a Ford Raptor? If it is a Ranger, going by the latest KRA CRSP the duty will be 921,474KES. If it a Raptor the duty is 1,262,526KES. Please note these figures may change and we advise that you consult with your clearing agent for final payable figures.

      Reply
  11. Sharon k on

    Thanks for this insightful information on importation. I would like to know the total taxes i will incur when importing Fielder Hybrid 2015.

    Reply
  12. Stephen Pilkington on

    I’m thinking of buying a 7.5t lorry/truck in uk and bringing it with me to Kenya. The value of the truck in the UK would be around 1.5m Kenyan shillings. And age around 2014
    How much would I pay by the time it is all finished and able to drive on Kenya roads

    Reply
    • Croton Motors on

      Hi Stephen, thank you for your question. Kindly allow us to follow up with you on your email regarding your query as we would need more information before we can answer.

      Reply
    • Croton Motors on

      Hi Jeff,thank you for your question. As discussed in the article, the cost of a car depends on many things, the make, model, year of manufacturer, capacity etc. We would have to know what car you want to give you a sample quote. That said, please note that duty for a 2020 car would be very high, say compared to a 2014 car.

      Reply
    • Croton Motors on

      Hi Fraciah, thank you for inquiring with Croton Motors. A fresh import 2014 Toyota Vitz will come in from 800-900k, depending.
      Let us know how we can be of help to you.

      Reply
    • Croton Motors on

      Hi Wilfred, thank you for your question. Please note that as per government regulations you cannot import a 2006/07 vehicle, as any car imported to Kenya must be younger than 7 years. In 2021 the oldest car you can import is 2014. Please let us know if you still need further help with this.

      Reply
    • Croton Motors on

      Hi Emmanuel, we are glad that the information was helpful to you. Which model of Toyota are you interested in? We will engage you further on email.

      Reply
    • Croton Motors on

      Hi Wycliffe, we estimate the duty for this will be around 725,000kes. Have you already bought one or you are looking to import? Let us know how we can help you.

      Reply
    • Croton Motors on

      Hi Githua, thank you for this question. We have an a very comprehensive guide on auction grades and how to read an auction sheet, you can read that article here..
      But to answer your question briefly, the import documents themselves will not have any information on the auction grade. When you choose a car to buy at the auction in Japan, you should look at its auction sheet, which will have information on the grade as well as any scratches, dents, mileage etc. As highlighted in the article I mentioned, there will be different grades with 6 being the highest (brand new). When you are importing a car from Japan, insist on seeing the auction sheet as this gives you all the information you need on the car. Once you buy the car, it will then be taken for inspection with an accredited body such as QISJ. QISJ will check to see whether your car complies with KEBS rules e.g. the 8 year rule,etc and not necessarily the grade.
      If you would like us to explain further or show you how to read an auction sheet, feel free to contact us on email or WhatsApp.

      Reply
    • Croton Motors on

      Hi Nyce, thank you for reaching out. We are currently not importing vehicles from China, we import from Japan, Thailand and the UK. We can import a 2019 hiace van for you from Japan. Is there a reason why you want to import from China specifically? Feel free to call us on 0723676784 for more discussion on the same.

      Reply
    • Croton Motors on

      Hi Evans, thank you for your inquiry. Are you looking for the total cost of importing or just KRA duty? Kindly reach us on 0723676784 so that we can give you better information.

      Reply
  36. Eric on

    Hey how much will it cost to pay for duty off a vehicle subaru legacy bl 5 2005 model with a ssd number plate I want to change to kenyan plates

    Reply
    • Croton Motors on

      Thank you for your inquiry. We are currently importing cars from year 2015 onwards. We will send you the quotation on email.

      Reply
    • Croton Motors on

      Hello Abednego, are you looking for the import duty? We need a few more details on the vehicle, and we have sent you a response on email.

      Reply
    • Croton Motors on

      Hi Christine, thank you for your inquiry. Currently, as per Kenya Government rules, the oldest car you can import to Kenya is year 2015. You can reach us on 0723676784 for more information

      Reply

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