UK RoadRunner | Understanding Car Import Duties in Kenya: An Overview

an image of a toy car on top of a digital calculator written tax

Importing a car to Kenya can be an exciting venture, but it’s important to understand the various car import duties and taxes that will impact your final cost. Whether you are importing a car from the UK or another country, the duties you pay can significantly increase the overall expense. This comprehensive guide will walk you through everything you need to know about car import duties in Kenya, ensuring that you are fully prepared for the process.

Overview of Car Import Duties in Kenya

Car import duties in Kenya are a set of taxes and fees levied by the Kenyan government body Kenya Revenue Authority(KRA) on vehicles brought into the country. These duties are designed to protect local industries and generate revenue for the state. When importing a car, you must be aware of these costs, as they will affect the total price of your vehicle.

The main duties include import and excise duty, and value-added tax (VAT), among others. Understanding these fees is essential for anyone considering importing a car into Kenya, whether you’re purchasing a new or used vehicle.

Breakdown of the Specific Duties and Taxes

A. Import Duty

Import duty is one of the most significant costs when importing a car to Kenya. Typically, this duty is calculated as a percentage of the vehicle’s customs value. For most vehicles, the import duty in Kenya is 35% of the customs value. This duty applies to both new and used vehicles, with the customs value being determined by factors such as the car’s age, model, and condition.

B. Excise Duty

Excise duty is another critical tax that applies to imported vehicles. The rate of excise duty varies depending on the engine capacity and the type of vehicle. For instance, vehicles with larger engine capacities typically attract higher excise duties. Understanding how excise duty is calculated can help you better estimate the total cost of importing a vehicle. This duty could be either 20% or 35%.

C. Value Added Tax (VAT)

VAT is a tax on the value added to the vehicle during the importation process. In Kenya, VAT is 16%, calculated on the vehicle’s customs value, including import and excise duties. This tax significantly impacts the overall cost and must be considered when budgeting.

A sample of an entry document showing the tax calculations of a Range Rover Autobiography in August 2024

D. Import Declaration Fee (IDF)

The Import Declaration Fee (IDF) is a mandatory fee that all importers must pay when bringing goods, including vehicles, into Kenya. The IDF is typically set at 2.5% of the customs value or a minimum of KES 5,000, whichever is higher. This fee is essential for the processing of your import documentation.

E. Railway Development Levy (RDL)

The Railway Development Levy (RDL) is another charge that applies to imported vehicles in Kenya. The RDL is calculated as 1.5% of the customs value and is used to fund railway infrastructure projects in the country. This levy, while relatively small, still adds to the overall cost of importing a vehicle.

Factors Influencing Car Import Duties in Kenya

Several factors influence the amount of duty you will pay when importing a car to Kenya:

A. Age of the Vehicle

The age of the vehicle is a significant determinant of the import duty payable. Older vehicles may attract higher duties due to stricter regulations aimed at reducing environmental impact and promoting newer, more efficient vehicles.

B. Engine Capacity

Vehicles with larger engines typically attract higher excise duties. This is because larger engines consume more fuel and produce more emissions, which the Kenyan government seeks to regulate through higher taxes.

C. Type of Vehicle

Different types of vehicles, such as personal cars, SUVs, and commercial vehicles, have varying duty rates. Understanding these differences can help you choose a vehicle that fits your budget.

How to Calculate Car Import Duties in Kenya

Calculating the total cost of importing a car to Kenya involves summing up all the duties and taxes mentioned above. Using an online import duty calculator can simplify this process and provide you with an accurate estimate. For example, a used car imported from the UK might have its customs value calculated first, followed by the application of import duty, excise duty, VAT, IDF, and RDL.

How UK RoadRunner Can Simplify Your Car Import Process

When importing a car through UK RoadRunner, we offer a comprehensive service that includes:

Assistance with duty calculation: We help you accurately calculate all duties using the Kenya Customs Duty Calculator and the Kenya Import Duty Calculator.
Clearing and Compliance: Our team handles the clearing process, ensuring your vehicle meets all Kenyan standards and regulations.
End-to-End Support: From purchasing the vehicle to delivering it to your doorstep in Kenya, we manage every step, providing peace of mind.

How You Benefit When You Import a Vehicle with UK RoadRunner:

Vehicle Quality Checks: Before purchasing a vehicle, we conduct thorough pre-purchase checks to ensure it meets the highest standards. Our inspections cover the vehicle’s mechanical condition, body integrity, mileage verification, and service history. This means you’ll only receive cars that have passed our stringent quality control, ensuring peace of mind when buying from UK RoadRunner.
Transparency in Costs: We provide detailed breakdowns of all fees and duties, so you know exactly what you’re paying for.

A Mercedes Benz C200 imported and cleared by UK RoadRunner

Get the Best Possible Price: Since we are UK-based, we have access to exclusive dealer networks and auctions, allowing us to negotiate the best prices on high-quality cars. This ensures you get the best possible price for your vehicle. By leveraging our extensive local knowledge and strong industry relationships, we pass the savings directly to you.
Time Savings: By handling all the logistics, we save you time and effort, allowing you to focus on other priorities.
Door-to-door Service: With UK RoadRunner, we offer a comprehensive door-to-door service that covers every step of the import process. Additionally, from sourcing the vehicle and calculating duties using a Kenya Import Duty Calculator to clearing customs and delivering the car to your preferred location in Kenya, we manage everything. You won’t need to worry about logistics or paperwork—we ensure a smooth, hassle-free experience.
Expert Guidance: Our experienced team ensures your import process is smooth and hassle-free with no hidden surprises.
Positive Reviews and Satisfied Customers: Our reputation speaks for itself. We have consistently received positive reviews from customers who praise our transparent processes, seamless service, and top-quality vehicles. These reviews highlight our commitment to delivering exceptional value and satisfaction.

Legal and Compliance Considerations

Importing a car to Kenya also involves several legal and compliance requirements. Ensuring that your vehicle meets Kenyan standards is crucial to avoid fines or delays. Necessary documentation, such as proof of ownership, a clean bill of lading, and a pre-shipment inspection certificate, must be in order before the vehicle arrives in Kenya.

Conclusion

Understanding car import duties in Kenya is essential for anyone considering bringing a vehicle into the country. Being aware of the various taxes and fees involved, you can better plan your purchase and avoid unexpected costs. Whether you are importing from the UK or another country, thorough preparation and knowledge are key to a successful import process.

For accurate calculations, consider using an import duty calculator and consulting with a reputable car exporter like UK RoadRunner, and use the right tools to ensure a smooth and cost-effective experience.