Importing a car to Kenya comes with several costs that go beyond the purchase price of the vehicle, and understanding this breakdown is essential to avoid surprises. The first major cost is Import Duty, which is charged at 25% of the customs value (CIF – Cost, Insurance, and Freight). This value is determined using the Kenya Revenue Authority’s Current Retail Selling Price (CRSP) schedule, not necessarily the price you paid for the car.
The second cost is Excise Duty, which varies depending on engine capacity and vehicle type. For passenger cars under 1500cc, it’s typically 20%, while for those above 1500cc, it can go up to 25% or higher. Electric vehicles have reduced excise rates to encourage eco-friendly imports.
Value Added Tax (VAT) is charged at 16% and is applied on the customs value plus import duty and excise duty. In other words, VAT is calculated after the first two taxes have been added, making it a significant part of the total cost.
In addition, there’s the Import Declaration Fee (IDF) at 3.5% of the customs value and the Railway Development Levy (RDL) at 2%. These are mandatory government charges aimed at supporting infrastructure and administrative processes.
Apart from taxes, there are other expenses to budget for. Pre-shipment inspection fees—paid to JEVIC or QISJ—are usually included in the exporter’s invoice but should be confirmed. Port handling and storage charges apply if your car stays at the port beyond the free storage period, which is typically four days. Clearing agent fees vary depending on the agent, and inland transport costs will depend on where in Kenya the vehicle is being delivered.
If you work with a trusted partner like Elisa Motors, you can get a clear upfront cost estimate that includes all duties, taxes, and logistical charges. This prevents unexpected bills during clearance and ensures you have a smooth import experience. Elisa Motors also helps calculate these costs accurately based on your car’s specifications before purchase, so you know exactly what to expect.
FAQs
Are import costs the same for all vehicles?
No, they vary depending on engine size, vehicle type, and age.
Can I avoid some of these taxes?
No, all government taxes and fees are mandatory unless the vehicle qualifies for a specific exemption.
Do electric cars have lower import costs?
Yes, excise duty is reduced for electric and hybrid vehicles.
How can I reduce port storage charges?
By ensuring your clearing agent is ready to start clearance before the car arrives.
Does Elisa Motors include all these costs in their service?
Yes, they provide a full cost breakdown before you commit to buying the vehicle