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

 

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

  1. Raymond Muriuki on

    What is the total cost (inclusive of clearance,storage,etc)of importing a Toyota hiace(7l),diesel, manual,white, year of manufacture,2016

    Reply
  2. Duncan Muuo on

    Hello, I’m I’m interested in a low mileage Lexus Lx 600. Kindly send me the details of what it’ll cost me. I’m in Nairobi. Thank you

    Reply
    • Croton Motors on

      Hello Francis, Thank you for inquiring with us. We have sent you more information on importing a 2015 harrier to your email

      Reply
  3. Samuel K on

    Hello… Would like to import Toyota Dyna 3000cc year of manufacture 2015 diesel manual transmission. How much will I be required to have for all the cost as tax?

    Reply
    • Croton Motors on

      Hey David,
      Import Tax for year 2015 Toyota Land Cruiser Prado 2700cc will be approximately 950,000 KES. Total cost will depend on the spec and condition of the car we choose but it will be a range of from 4,600,000 ~ 5,600,000 KES.

      Reply
  4. Alan on

    Hi. Thanks for the useful article.

    Kindly assist with my understanding of the calculations, to ensure I don’t bugger this up. I want to be sure that the example you provided is correct, as the KRA calculation website does not work properly.

    With a CRSP of 4,495,000, how did you calculate a Customs Value of 605k? Is the depreciation of 10% per year applied on the reducing balance annually or on the original CRSP?

    605k would be 86.5% depreciation based on a CRSP of 4.495m, assuming straight line depreciation based on the original CRSP.

    If applying 70% depreciation (assuming again straight line based on 10% per year of the original CRSP), then Customs Value would be the remaining 30% of 4,495,000 = over 1.3m.

    Based on this depreciated value at 10% of the full CRSP amount per year, all of the other costs basically more than double.

    If you can 100% confirm that it is 10% of the reducing balance, then that definitely helps clarify, and we can discuss options.

    Reply
    • Croton Motors on

      Hi Alan, thank you for your question. I think it would be helpful if someone from our sales team called you with an explanation of how to arrive at the duty, particularly for the car you have in mind? Please give us a phone number or reach out on 0723676784. Please note, if you inquire on a car, we will give you all costs to your doorstep.

      Reply
  5. Kennedy on

    Hi, I wanted to know how much it will be to import a 2017 Toyota passo. I have read your explanation about how KRA determines how much tax is paid, but unfortunately maths was not my cup of tea while in school….hehehehe.

    Reply
    • Croton Motors on

      Hi Kennedy, isn’t this true for most of us! Thank you for reaching out, a member of our sales team will reach out to you

      Reply
  6. Egesa on

    How much will it cost me in total to have my car in Nairobi. We say 2015 Nissan Sylphy 1600CC from Singapore or 1800cc from Japan

    Reply
  7. Kala on

    Can I still import a 2015 Mercedes A250? How much is duty and total charges as I have already paid for the car in Australia

    Reply
    • Croton Motors on

      Hi Kala,
      it is now too late to import year 2015 car to Kenya. Vehicles destined for the Kenyan market must meet the following requirements:
      (a)Must be less than 8 years old form the year of first registration.
      (b)Will be subject to roadworthiness inspection by a KEBS appointed inspection agent in the country of export.
      (b)Must be Right Hand drive

      Let us know if you would want our help in sourcing and importing a car for you.

      Reply
    • Croton Motors on

      Hi Johnie, a member of our sales team will email you with more information of how much it would cost to import a Toyota Probox

      Reply
    • Croton Motors on

      Hi Ashford, thank you for your inquiry. We would need to understand what type of exemption you have. Kindly allow a member of our sales team to get back to you, or call us on 0723676784.

      Reply
  8. Kisia on

    Hi, I would like to know the approximate cost of shipping a 2016 Mazda Demio petrol inclusive all import and duty charges. Kindly treat it as urgent.
    Thanks.

    Reply
  9. robert on

    hi, i would like to know the full cost from japan of a toyota hiace 2015 or 2016, the one valid to be imported this year

    Reply
  10. Jaymo on

    Hi Croton Motors
    Thanks for this breakdown.

    Just noticed:
    In the Mazda example, the calculation to arrive at the import duty seems wrong. Not clear how the custom value was arrived at, when following the numbers. Also I think there is an error in the excise duty value.

    Please check

    Reply
    • Croton Motors on

      Hi Jaymo,
      Thank you for taking time to read and leave us a comment.
      We will definitely check to make sure that the calculations are correct.

      Reply
    • Croton Motors on

      Hi Sam, thank you for your inquiry. We have sent you the duty breakdown for importing a Toyota Succeed on your email

      Reply
    • Croton Motors on

      Hi Lydiah,
      Thank you for reaching out to Croton Motors. One of our sales consultants will get back to you shortly with the cost of importing a 2017 Mazda Premacy

      Reply
    • Croton Motors on

      Hi Wilson thank you for inquiring with us. We buy our vehicles directly from auctions in Japan and not from other dealers. Let us know if we can be of help if you are looking to import a car from Japan.

      Reply
  11. Joseph charo kaingu on

    Is it possible to import a car year of manufacture 2009 to Kenya? If it’s possible what the total cost of importing tiida worth 2518 dollars to Kenya plus the total import duties and taxes

    Reply
    • Croton Motors on

      Hi Joseph, thank you for inquiring with Croton Motors. Unfortunately you cannot import a car of year 2009 to Kenya now. Currently, you can only import a car of year 2016, and this car has to arrive in Kenya before December 2023. From next year, we will be importing cars of 2017. Let us know if you would like us to assist you with importing.

      Reply

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