Are you planning on importing a motor vehicle into Kenya? Whether you’re looking to bring in a sleek new car or a reliable second-hand vehicle, the process can seem daunting. However, understanding the requirements, costs, and steps involved can make the experience much smoother. Here’s an in-depth guide to help you navigate the process with ease.
1. Hire a Licensed Clearing Agent
To clear a vehicle through Kenya Customs, you’ll need to engage a licensed clearing agent. These agents are registered with the Kenya Revenue Authority (KRA) and can help process your declaration in the KRA system. They are responsible for:
- Lodging the import entry.
- Paying required duties and taxes.
- Presenting all relevant documents for Customs clearance.
A comprehensive list of licensed clearing agents is available on the KRA website.
2. Ensure Vehicle Compliance with KS 1515:2000
Kenya Bureau of Standards mandates that imported vehicles meet the KS 1515:2000 Code of Practice for Inspection of Road Vehicles. This regulation emphasizes three key criteria:
- Age Limit: Vehicles must not be older than eight years from the year of manufacture.
- Left-Hand Drive: Left-hand drive vehicles are not allowed, except for special-purpose vehicles like ambulances, fire tenders, and large construction machinery meant for government projects.
- Roadworthiness: All used vehicles must be inspected for safety, roadworthiness, and compliance with other regulations before importation.
3. Required Documents for Importation
The following documents are necessary to clear your motor vehicle through Customs:
- Original Commercial Invoice.
- Original Bill of Lading.
- Import Declaration Form (IDF) obtained from KRA.
- Authentic original logbook from the country of origin.
- Certificate of Roadworthiness.
If the logbook is in a foreign language, an English translation issued by the relevant embassy or consulate in Kenya must accompany it. Note that KRA does not accept a Certificate of Export as a substitute for a foreign logbook.
4. Calculating Duties and Taxes
Kenyan law stipulates various taxes and duties payable when importing a motor vehicle. Here’s a breakdown:
- Import Duty: 25% of the Customs Value (CIF).
- Excise Duty: 20% for vehicles with engines up to 1500cc and 25% for those above 1500cc.
- Value Added Tax (VAT): 16% of the Customs Value + Import Duty + Excise Duty.
- Rail Development Levy: 2% of CIF.
- Import Declaration Fee (IDF): 3.5% of CIF.
Example Calculation
For a Toyota Auris (1800cc) manufactured in January 2017:
- Current Retail Selling Price (CRSP): Ksh 2,355,704
- Depreciation: 40%
- Import Duty: 25% = Ksh 155,963.85
- Excise Duty: 25% = Ksh 194,954.81
- VAT: 16% = Ksh 155,963.85
- Rail Development Levy: 2% = Ksh 12,477.11
- IDF Payable: 3.5% = Ksh 21,834.94
- Total Duties Payable: Ksh 541,194.56
The Cost Insurance and Freight (CIF) value is determined using the CRSP and a valuation matrix available on the KRA website.
5. Steps for Vehicle Inspection and Clearance
After obtaining all the necessary documents, your clearing agent will:
- Lodge an entry in the KRA system.
- Present the vehicle for Customs inspection.
- Facilitate payment of duties and taxes.
If the vehicle conforms to the required standards, Customs will approve the entry, and you can complete the importation process.
6. Special Cases: Exempt Vehicles
If you purchase a vehicle previously exempted from duties (e.g., diplomatic vehicles), you must have it inspected and cleared through Customs. This process includes lodging an entry, vehicle inspection, and payment of relevant duties.
7. Avoid Common Pitfalls
- Ensure your vehicle meets all age, compliance, and roadworthiness requirements before importation.
- Work only with licensed clearing agents to avoid fraud or delays.
- Confirm that all documentation is accurate and complete to prevent rejections at Customs.
8. Benefits of Importing Your Vehicle
Despite the complexities, importing a motor vehicle allows you to:
- Access a broader range of vehicles not available locally.
- Purchase at potentially lower prices compared to local dealerships.
- Customize your vehicle to meet personal preferences.
Read: How to Apply for KRA Penalty and Interest Waiver via iTax in 2025
Conclusion
Importing a motor vehicle into Kenya may seem challenging, but with the right knowledge and preparation, it can be a rewarding experience. Follow this guide, ensure compliance with the regulations, and enjoy the benefits of owning your dream car.
