Importing a car to Kenya can be an exciting venture, offering the chance to own a vehicle that suits your personal style and needs.
However, before you embark on this journey, it’s essential to understand the various fees and taxes that can significantly impact your budget.
In this article, WoK will guide you through the intricacies of the import process, detailing the specific fees involved.
1. Marine insurance and shipping cost
Marine insurance is essential as it protects your vehicle during transit.
This insurance must be obtained from a local Kenyan insurer and typically costs about 0.4% of the car’s value.
Having marine insurance ensures that you are covered against potential damages or losses that may occur while the vehicle is being transported.
Shipping costs for importing a car can vary significantly based on the method chosen.
The Roll-on/Roll-off (RoRo) method is generally the more economical option while the container shipping offers greater security for your vehicle but tends to be more expensive.
2. Import duty
The import duty for importing a car to Kenya is currently set at 35% of the customs value.
This customs value is determined by the Current Retail Selling Price (CRSP) provided by the Kenya Revenue Authority (KRA), adjusted for depreciation based on the vehicle’s age.
The higher value between the CRSP and the actual invoice price is used for calculation35.
3. Excise duty
The excise duty is calculated based on the vehicle’s engine capacity and fuel type.
For cars with engine capacities of 1500 cc or less, the excise duty is 20% of the combined value of the Current Retail Selling Price (CRSP) and import duty.
For vehicles exceeding 1500 cc, this rate increases to 25%, with further increments based on engine size125.
Additionally, an import duty of 35% is applied to the CRSP, and a VAT of 16% is calculated on the total of these duties45.
4. Value Added Tax (VAT)
The Value Added Tax (VAT) is set at 16% of the total, which includes the Customs Value (CIF), Import Duty, and Excise Duty.
The Import Duty is typically 25% of the CIF value. Additionally, Excise Duty varies based on the engine capacity and age of the vehicle.
There are also other fees to consider, such as the Railway Development Levy, which is 2% of the CIF value, and the Import Declaration Fee, which is 3.5% of the CIF value.
5. Import declaration fee
The Import Declaration Fee (IDF) is set at 3.5% of the CIF (Cost, Insurance, and Freight) value of the vehicle.
This fee is essential for processing the importation paperwork and must be paid at the time of declaring the vehicle for importation.
Additionally, there may be a minimum charge of KES 5,000 if the calculated fee is lower.
6. Railway development levy
When importing a car into Kenya, the Railway Development Levy (RDL) is charged at 2% of the Customs Value (CIF value) of the vehicle.
This levy is part of the total import costs, which also include Import Duty (25%), Excise Duty, and Value Added Tax (VAT) (16%) on the cumulative total.
The RDL supports railway infrastructure development in Kenya.
Other costs when importing a car to Kenya include car registration cost, railway development fund, road worthiness check, port charges and inspections.
