From July 1, 2025, the import duty on vehicles will be 35% of the customs value, an increase from the previous 25% rate. This is part of the government’s revised tax framework aimed at aligning with regional trade agreements and revenue collection targets.

Excise Duty will still vary between 20% and 35%, depending on the engine size and classification of the vehicle. Larger engine capacities and luxury models typically attract the higher rates.

Value Added Tax (VAT) remains at 16%, but it is charged on the cumulative value of the customs value plus import duty and excise duty. This means that VAT is applied after the other charges have been added.

The Import Declaration Fee (IDF) is calculated at about 3.5% of the customs value, while the Railway Development Levy (RDL) is around 2% of the customs value.

From July 2025, a new valuation system will also take effect. Instead of relying solely on fixed KRA retail prices, duties will now be calculated using your actual purchase invoice along with costs for shipping, insurance, and adjustments for the vehicle’s age. This change is intended to make the process more transparent and fair to importers.

Elisa Motors helps clients navigate these tax rules with precision, ensuring accurate duty estimates before shipping, smooth clearance at the port, and full compliance with the latest KRA regulations. By working with Elisa Motors, you avoid costly surprises and ensure your imported vehicle reaches you without unnecessary delays