🇰🇪 How KRA Calculates Car Import Taxes in Kenya: Full Breakdown with Examples

Importing a used car to Kenya sounds like a sweet deal — until you realize the taxes and hidden charges can sometimes double the price of the vehicle. So how exactly does KRA (Kenya Revenue Authority) calculate the import duty, VAT, IDF, and other taxes?

If you’ve ever asked:

• "Why did my car end up so expensive at Mombasa?"

• "What’s CIF and how does it affect taxes?"

• "How can I estimate my total cost before I import?"

This article is your complete step-by-step guide to how KRA calculates car import tax in 2025 — including real-life examples and tips to save money.

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🧮 Taxes Charged When Importing a Car to Kenya

Here’s a quick summary of the main taxes and fees that KRA will charge:

Tax Type	Rate
🚢 Import Duty	25% of CIF
🔁 Excise Duty	Varies (20%–35%+) depending on engine size, age
🧾 VAT	16% of (CIF + Import Duty + Excise Duty)
📋 IDF (Import Declaration Fee)	3.5% of CIF (minimum KSh 5,000)
🏷️ RDL (Railway Development Levy)	2% of CIF

Let’s break each of them down in detail.

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📦 What Is CIF (Cost + Insurance + Freight)?

CIF is the total value of the vehicle by the time it arrives at the Port of Mombasa.

It includes:

• 💰 Cost of the car (FOB – Free On Board)

• 🚢 Freight charges (from Japan/UK/UAE to Kenya)

• 📄 Insurance (marine insurance)

This CIF value is what KRA uses to calculate all the taxes.

🔍 Important: You don’t declare CIF — KRA determines it using the Current Retail Selling Price (CRSP) list published every quarter.

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📘 Example: Calculating Import Tax for a Toyota Fielder 2017

Let’s say you’re importing a 2017 Toyota Fielder Hybrid (1500cc) from Japan. KRA’s CRSP lists it at:

• CRSP: KSh 1,790,000

KRA then depreciates the value based on age:

Vehicle Age	Depreciation (%)
0–1 year	0%
2 years	10%
3 years	20%
4 years	30%
5 years	40%
6 years	50%
7 years	60%
8 years	70%

Assume car is 8 years old:

• Depreciated Value = 1,790,000 - 70% = KSh 537,000

• Add estimated freight & insurance (KSh 120,000)

• CIF = KSh 657,000

Now Calculate Each Tax:

1. Import Duty (25%)
= 25% of 657,000 = KSh 164,250

2. Excise Duty

• Engine <1500cc = 25%

• 25% of (657,000 + 164,250) = KSh 205,312.50

3. VAT (16%)
= 16% of (657,000 + 164,250 + 205,312.50) = KSh 166,972

4. IDF (3.5% of CIF)
= 3.5% of 657,000 = KSh 22,995

5. RDL (2% of CIF)
= 2% of 657,000 = KSh 13,140

📊 Total Taxes Payable to KRA:

• Import Duty: 164,250

• Excise Duty: 205,312.50

• VAT: 166,972

• IDF: 22,995

• RDL: 13,140
  = KSh 572,669.50

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📌 Special Notes on CRSP and KRA Valuation

• KRA uses CRSP values, NOT auction prices

• Even if you buy a Fielder at KSh 400,000 in Japan, you’ll still be taxed as if it's worth KSh 1.79M minus depreciation

• Depreciation caps at 70% even if car is older or cheaper

• All calculations are done electronically through the ICMS system

💡 Pro Tip: Always check KRA's latest CRSP list before importing to get accurate projections.

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⚠️ Taxes Are Higher for:

🚙 Large Engines

• Above 1500cc = 30% excise

• 2500cc+ = 35% or more

🚗 Older Cars (7–8 years)

• Higher depreciation = Lower CIF, but excise can still sting

🚗 Diesel Engines

• More emissions = heavier taxation

💼 Commercial Vehicles

• Some trucks/vans attract less excise, but more IDF/VAT

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💰 What If You Don’t Agree with the CIF Value?

You can dispute KRA’s valuation by:

1. Filing a formal appeal via the Customs Valuation Dispute Form

2. Presenting auction sheet, invoice, and inspection reports

3. KRA may reassess the CIF if documents are solid

But this process can take weeks — and your car might sit at port incurring storage fees. Best to prepare with accurate values.

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📋 Sample Import Tax Summary Table (Based on Engine Size & Year)

Car	Engine	Year	Est. CIF	Total KRA Taxes
Toyota Fielder	1500cc	2017	657K	~572K
Nissan X-Trail	2000cc	2018	850K	~765K
Subaru Forester	2500cc	2016	1.1M	~1.2M
Toyota Land Cruiser	4500cc	2015	2.5M	~3.5M

📌 These are estimates — actual costs may vary slightly depending on freight, exchange rate, etc.

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📲 Tools You Can Use

• 🔗 KRA CRSP Lookup Tool – Updated every quarter by KEBS

• 📱 Code & Clutch Car Tax Calculator (Coming Soon to App & Web) – enter make/year/engine and get your estimate instantly

• 🧾 Auction Sheet Checkers – Confirm car age, model, VIN before CIF projection

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🚫 Hidden Charges Most Importers Forget

Even after paying taxes, you may encounter:

Hidden Cost	Amount (Approx.)	Notes
Port Clearance	KSh 10,000–30,000	Agent fee
Port Storage	KSh 2,000/day	After 3–5 days grace
Number Plate & Logbook	KSh 7,000	NTSA charges
NTSA TIMS Fee	KSh 700–1500	Registration
Marine Insurance	KSh 4,000–6,000	Included in CIF
Container Devanning	KSh 3,000–5,000	If car shipped in container

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💡 Smart Ways to Save on Import Taxes

1. Import cars between 1300cc–1800cc

   • Sweet spot for value and taxes

2. Target 5–7 year-old cars

   • Higher depreciation, lower CIF

3. Avoid cars with rare trims or engine sizes

   • KRA may set higher CRSP

4. Use consolidated shipping (RoRo)

   • Saves freight, lowers CIF

5. Negotiate freight & insurance

   • Lower CIF = lower overall tax

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🤝 Final Thoughts

The truth is — taxes are the biggest cost in importing a car to Kenya. But with the right info and planning, you can stay ahead of KRA’s system and avoid overpaying.

🔑 Always:

• Check CRSP

• Know your engine size and year

• Estimate CIF early

• Add all tax layers: import duty + excise + VAT + IDF + RDL

And remember — importing isn't just about getting a cheap deal. It’s about being informed, compliant, and prepared.

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🖼️ Suggested Images for This Article

1. Chart showing tax breakdown layers

2. Screenshot of KRA CRSP table

3. Example Toyota Fielder valuation

4. A calculator icon with car + Kenya flag

5. Port image showing car offloading

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📞 Need a Tax Estimate for Your Car?

Just send your Car Make, Year, Engine Size, and Auction Sheet to:
📲 0717423659 (Code & Clutch Assistant)
We’ll calculate your full KRA taxes in under 5 minutes — FREE.