The Railway Development Levy (RDL) is a mandatory tax charged on all imports into Kenya, including cars, to help fund the country’s railway infrastructure projects. For vehicle imports, the RDL is set at 2% of the customs value (CIF – Cost, Insurance, and Freight) of the car. This amount is paid to the Kenya Revenue Authority (KRA) during customs clearance at the Port of Mombasa.

The customs value used to calculate the RDL is determined based on the KRA’s Current Retail Selling Price (CRSP) schedule, not necessarily the purchase price from your exporter. This means even if you get a good deal on the car, the RDL will still be charged according to KRA’s valuation. The RDL, like the Import Declaration Fee (IDF), is separate from other taxes such as Import Duty, Excise Duty, and VAT, but it must be paid before your vehicle can be released from the port.

Failure to pay the RDL will delay clearance, leading to additional costs such as port storage charges. Since this levy is non-negotiable, it’s best to factor it into your budget right from the start. Elisa Motors ensures that clients have the exact RDL amount calculated before purchase, making it easier to prepare for all the costs involved in importing a car. They also handle the payment process on behalf of their clients, ensuring no delays or penalties occur during clearance.

FAQs

Is the RDL charged on all vehicles?
Yes, it applies to every imported vehicle, regardless of age, type, or origin.

Can the RDL be waived?
Only in very rare cases, such as certain diplomatic imports or special government exemptions.

Is the RDL refundable?
No, once paid to the government, it is non-refundable.

When is the RDL paid?
It is paid during the customs clearance process before the vehicle is released from the port.

Does Elisa Motors include RDL in their cost estimate?
Yes, Elisa Motors provides a full breakdown of all import costs, including the RDL, before the buyer commits to a purchase.