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.

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.

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!