Before you ship that car: Here's what you will owe in taxes in Kenya

Kenya has witnessed a steady decline in motor vehicle imports over the past five years, reaching the lowest levels since 2019, according to the 2025 Economic Survey report by the Kenya National Bureau of Statistics (KNBS).

According to the latest figures, vehicle imports fell by 10.9 per cent in 2023 to 78,127 units, down from 87,648 units recorded in 2022.

This represents the lowest number of imported vehicles in the five years under review.

The downward trend began after 2019, when imports peaked at 109,930 units. Although 2021 saw a brief resurgence to 103,860 units, the decline resumed in subsequent years.

Analysts attribute the fluctuations to an array of economic challenges, evolving import policies, and shifting consumer preferences within the automotive sector.

Process of importing a car

Importing a car into Kenya is a common route for many Kenyans looking for quality vehicles at competitive prices.

However, the process involves several logistical and legal steps, as well as multiple taxes and fees. Understanding this process can help avoid delays, fines, or costly surprises.

Choose a compliant vehicle

Before purchasing, ensure the car meets Kenya’s import regulations:

Vehicles must not be more than 8 years old from the year of first registration.

Left-hand drive vehicles are not allowed for registration in Kenya for regular use. However, there are some exceptions for returning residents and specific special-purpose vehicles like ambulances.

Identify a reliable supplier

Most imported cars come from Japan, the UK, the UAE, or South Africa.

This has been made easier thanks to the internet, which has made the world a global village. Your authorized dealer is a click away.

Pre-Shipment Inspection (PSI)

You must have seen a JEVIC (Japan Export Vehicle Inspection Center) sticker on the windscreen of a vehicle.

This is a basic requirement for all used vehicles that they must undergo pre-shipment inspection for roadworthiness by an authorized agent like JEVIC.

This ensures compliance with Kenya Bureau of Standards (KEBS) requirements.

Shipping and port handling

Once the agreed amount has been settled between the buyer and the seller, the vehicle will then be inspected in readiness for shipping to the Port of Mombasa.

The shipping period ranges from 30 to 45 days.

Engage a clearing agent

Clearing agents handle documentation, tax calculation, and customs clearance.

It's mandatory to work with a licensed agent for clearance with the Kenya Revenue Authority (KRA) and Kenya Ports Authority (KPA).

Import duties and taxes

This is often the most complex but most important part. All taxes are based on the vehicle’s customs value (CIF), which includes Cost, Insurance, and Freight (CIF).

Taxes charged when importing a car are as follows: 

Import Duty is twenty-five (25) per cent of the CIF value, Excise duty ranges from 20 per cent to 35 per cent of the CIF plus Import duty, based on engine capacity and age.

Cars below 1500cc cost 25 per cent, while 1501cc and above stand at 35 per cent.

Value Added Tax (VAT) is 16 per cent of the CIF plus Import Duty and Excise Duty

The Import Declaration Fee (IDF) is two per cent of the CIF value.

Railway Development Levy (RDL) is 1.5 per cent of the CIF value

Taxes broken down

For example, if one is importing a car with a CIF value of Sh1,000,000, below are the tax calculations to expect.

Import Duty is 25 per cent of 1,000,000, which translates to Sh250,000

Excise Duty (35 per cent): 35 percent of 1,250,000 = Sh437,500

VAT: 16 per cent of 1,687,500 = Sh270,000

IDF: 2 per cent of 1,000,000 = Sh20,000

RDL: 1.5 per cent of 1,000,000 is equal to Sh15,000

Total estimated tax will be Sh992,500.

Registration with NTSA

After clearing customs, the vehicle must be registered with the National Transport and Safety Authority (NTSA).

The owner will receive a logbook, Kenyan registration plates, and their Tims NTSA account will be updated with their detail, including ownership.

Happy motoring, and only engage licensed clearing agents for a smooth importation process.