Importing a car into Kenya can be a costly process due to the taxes and duties imposed on vehicle imports. However, there are legal ways to import a car duty-free under specific conditions. Understanding these options can help you save money and navigate the process efficiently. This guide provides a step-by-step breakdown of how to import cars duty-free in Kenya.

Understanding Duty-Free Importation

Duty-free car importation allows eligible individuals and entities to bring cars into Kenya without paying the standard import duties and taxes. This privilege is extended to specific categories, such as returning residents, diplomats, and certain government organisations. Taking advantage of duty-free importation can significantly reduce the overall cost of acquiring a vehicle.

Types of Duty-Free Importation

The Kenyan government provides duty-free exemptions for certain groups, including:

• Returning Residents: Kenyan citizens who have lived abroad for at least two years and are returning permanently can import one personal vehicle (excluding buses and minibuses with a seating capacity of more than 13 passengers, as well as load-carrying vehicles that can carry more than two tonnes) duty-free. To qualify, they must have owned the vehicle for at least 12 months before their relocation, not including the time spent in transit during shipping.

• Diplomats and Government Agencies: Foreign diplomats, international organisations, and certain government bodies may be allowed to import vehicles duty-free as part of their work agreements.
• People with Disabilities: Registered individuals with disabilities might qualify for tax exemptions when importing vehicles that have been customised for their needs.

Steps to Importing Cars Duty-Free

Step 1: Verify Eligibility

Before beginning the importation process, confirm that you meet the eligibility criteria for duty-free importation. For returning residents, you will need supporting documents such as proof of residency, employment records, and car ownership documents.  To qualify as a returning resident, you must be a Kenyan citizen changing residence from outside Kenya to within Kenya.

Eligibility Conditions:

• Proof of residence outside Kenya (e.g., work permits, residence permits).
• Evidence of returning to Kenya (e.g., passport entry stamps, completion of contract/work assignment).
• Must have owned and used the vehicle for at least 12 months before returning.
• The vehicle must not exceed 8 years from the date of manufacture.
• The individual must not have enjoyed a similar exemption in the last four years

Step 2: Ensure Vehicle Eligibility

Not all cars qualify for duty-free importation. The vehicle must:

• Meet Kenya’s age limit for imports (currently 8 years from the year of manufacture).
• Comply with KEBS (Kenya Bureau of Standards) requirements.
• Have proper documentation proving previous ownership.

For returning residents, in case of replacement of left-hand drive motor vehicle, the following additional conditions will apply;

• Evidence of disposal of the left-hand drive vehicle 

• The CRSP Current Retail Selling Price of the replacement right-hand drive vehicle should not exceed that of the previously owned left-hand drive vehicle. 

• The country which one is returning from must be operating left-hand drive vehicles 

Step 3: Application Process

Once eligibility is confirmed, apply for duty exemption through the Kenya Revenue Authority (KRA) or the Ministry of Foreign Affairs (for diplomats). The application should include:

• Copy of passport and residency  (for returning residents).
• Proof of car ownership for at least 12 months before relocation.

To apply for a customs exemption on a vehicle import as a person with a disability in Kenya, you must submit a formal application to the Commissioner of Customs & Border Control. The application must include supporting documents, such as a medical certificate and proof of disability. A test drive will be conducted in the presence of a customs officer at the point of entry, like Mombasa Port. The exemption allows for vehicle replacement after four years, provided proper disposal of the previous vehicle is documented.

Required Documents

• Application Letter – Addressed to the Commissioner of Customs & Border Control.
• Medical Certificate – Original and certified copy from a registered doctor.
• Letter of Recommendation – From a recognised disability association (APDK or NCPWD).
• Driving License – Copy with Class ‘H’ (now Class F) endorsement or driver nomination documents if applicable.
• Bill of Lading – Addressed to the applicant.
• Invoice – Original or proforma invoice for the vehicle.
• Tax Certificates – Tax Compliance Certificate & Income Tax Exemption Certificate.
• Proof of Payment – Cash remittance/transfer slips for the vehicle payment.
• Bank Statement – The Last six months showing vehicle payment transactions.
• National ID – Copy of the applicant’s ID card.
• NCPWD ID Card – Copy of the National Council for Persons with Disabilities ID.
• Replacement Policy – Proof of disposal is required after four years for a new exemption.

General Importation Requirements:

1. Age Limit: Vehicles must be less than 8 years old from the year of first registration.
   
2. Drive Orientation: Only right-hand drive vehicles are permitted for importation.
   
3. Roadworthiness Inspection: All vehicles must undergo a pre-shipment inspection by a KEBS-appointed agency to ensure compliance with Kenyan standards.

Step 4: Customs Clearance

Upon arrival at the Mombasa Port, customs clearance procedures must be followed. This includes:

• Submitting exemption approval documents to KRA.
• Inspecting the vehicle to confirm compliance with standards.
• Completing the registration process with the National Transport and Safety Authority (NTSA).

Exemption Categories and Qualification Requirements Breakdown:

Returning Residents:

Eligibility: Kenyans who have lived abroad for at least two years and are now relocating back to Kenya.

Conditions:

The vehicle must have been owned and used by the individual for at least 12 months prior to returning.

The vehicle should be imported within 90 days of the individual’s arrival in Kenya.

The individual must not have visited Kenya for more than 90 days in the two years preceding return.

Required Documentation:

Original purchase invoice or proof of ownership.

Registration documents from the country of origin.

Valid work permits or residency documents from the country of residence.

Passport showing entry and exit stamps.

Tax Compliance Certificate from KRA.

Diplomats and Public Officers:

Eligibility: Individuals returning from official duties abroad, including diplomats and public officers.

Conditions:

The vehicle must have been owned and used for at least 12 months prior to importation.

Importation should occur within 90 days of returning to Kenya.

Required Documentation:

Official appointment letters or proof of service abroad.

Vehicle registration documents from the country of origin.

Diplomatic credentials, if applicable.

Tax Compliance Certificate from KRA.

Persons with Disabilities:

Eligibility: Individuals registered with the National Council for Persons with Disabilities (NCPWD).

Conditions:

The vehicle must be specially adapted to suit the disability, if necessary.

The individual should provide proof of disability and registration with NCPWD.

Required Documentation:

NCPWD membership card.

Medical reports detailing the nature of the disability.

Vehicle modification details, if applicable.

Tax Compliance Certificate from KRA.

General Documentation for Exemption Applications:

• Bill of Lading: Issued by the shipping company, detailing the vehicle’s shipment.
• Import Declaration Form (IDF): Obtained from KRA prior to shipment.
• Pre-Shipment Inspection Certificate: Issued by a KEBS-appointed agency, confirming the vehicle’s compliance with Kenyan standards.
• Commercial Invoice: Details of the vehicle’s purchase transaction.
• Original Logbook/Certificate of Title: Proof of ownership from the country of origin.
• KRA PIN Certificate: Personal Identification Number for tax purposes.
• NTSA TIMS Account: For vehicle registration and issuance of the logbook.
• Duty Exemption Approval Letter: Issued by KRA upon approval of the exemption application.

Important Considerations:

• Application Process: Submit all required documents to KRA for review and approval before the vehicle arrives in Kenya.
• Compliance: Ensure the vehicle meets all KEBS standards, including age and mechanical conditions.
• Timelines: Adhere to specified timelines for importation after arrival to avoid penalties.

Tax Implications and Exemptions

Under normal circumstances, imported vehicles are subject to several duties and taxes, including import duty, excise duty, VAT, and the Railway Development Levy. Import duty is usually 35% of the CIF (Cost, Insurance, and Freight) value, excise duty varies depending on engine capacity, VAT is set at 16%, and the Railway Development Levy is 2.5%. However, for duty-free imports, these taxes are waived, significantly reducing the total cost of the vehicle. While import duties may be eliminated, other costs such as Merchant Shipping Superintendent (MSS) Levy and registration fees still apply. Returning residents are exempt from payment of Import Duty, Excise Duty, VAT, and IDF. A processing fee is charged for all Duty-Free car imports.

Challenges and Considerations

While duty-free importation provides significant cost savings, it comes with challenges. Eligibility requirements are strict, and failure to meet all conditions may result in rejection. The approval process can also be lengthy, requiring patience and proper documentation. Additionally, while import duties are waived, there are still costs, such as port fees and registration charges, that must be factored in.

Conclusion

Importing a car duty-free in Kenya is a great way to save money, but it requires careful planning and adherence to regulations. Understanding eligibility, preparing the necessary documents, and following the correct procedures can ensure a smooth process. If you qualify, take advantage of this opportunity to reduce costs while acquiring your dream car.

For more information and assistance with car importation, contact UK Roadrunner today! Our expertise in logistics and customs clearance makes us the ideal partner for your duty-free car import needs. Here’s how we can help:

We offer expertise in shipping vehicles, with years of experience transporting cars to Kenya and other destinations. Our team assists with customs clearance, guiding you through the process and ensuring all documents are in order. We also offer competitive pricing, delivering affordable rates without compromising on quality. Most importantly, we provide reliable service, ensuring your car is in safe hands from start to finish.