How to Calculate Car Import Tax in Kenya (2025): A Step-by-Step Guide
How to Calculate Car Import Tax in Kenya (2025): A Step-by-Step Guide
Importing a car into Kenya can save you money and help you get a well-maintained ride from Japan, the UK, or UAE. But understanding how taxes are calculated is where most people get confused—and sometimes, financially burned.
At Code & Clutch, we believe in full transparency. In this article, we break down everything you need to know about calculating car import taxes in Kenya for 2025—step-by-step, easy to follow, and accurate.
🧮 Why You Must Understand Import Taxes
Let’s be real—importing a car is not just about paying for the vehicle. The hidden beast lies in taxation. You can buy a car at $4,000, and by the time it lands in Kenya, the total cost hits over KSh 1 million.
Here’s why understanding the formula matters:
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Helps you budget accurately
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Avoids surprise charges at the port
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Helps you spot fake quotes from shady dealers
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Empowers you to compare between import vs local buying
⚖️ Step-by-Step Breakdown of Car Import Tax in Kenya
KRA uses the Current Retail Selling Price (CRSP) to estimate how much tax you should pay. This is not the price you bought the car for—it’s the standard value of that model in Kenya.
Here are the main components of the tax formula:
1. ✅ Import Duty – 25%
Calculated from the Customs Value (usually based on CRSP).
📌 Example: If the CRSP of the car is KSh 1,000,000, the Import Duty = 25% of 1,000,000 = KSh 250,000
2. 📄 Excise Duty – 20% to 35%
This depends on engine capacity and age of the vehicle:
| Engine Size | Excise Duty |
|---|---|
| <1500cc | 25% |
| 1500cc – 2000cc | 30% |
| >2000cc | 35% |
Excise Duty is charged on the value after adding Import Duty.
So in our example:
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Base CRSP = KSh 1,000,000
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Import Duty = 250,000
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Subtotal = 1,250,000
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Excise @25% = KSh 312,500
3. 💰 VAT – 16%
Charged on the total of (CRSP + Import Duty + Excise Duty)
Using our example:
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Subtotal so far = 1,000,000 + 250,000 + 312,500 = 1,562,500
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VAT = 16% of 1,562,500 = KSh 250,000
4. 🧾 IDF Fee – 2.25% + RDL Fee – 1.5%
These are minor but compulsory:
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IDF Fee = 2.25% of Customs Value = KSh 22,500
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RDL Fee = 1.5% = KSh 15,000
📊 Final Tax Breakdown Table
| Tax Component | Amount (KSh) |
|---|---|
| Import Duty (25%) | 250,000 |
| Excise Duty (25%) | 312,500 |
| VAT (16%) | 250,000 |
| IDF Fee (2.25%) | 22,500 |
| RDL Fee (1.5%) | 15,000 |
| TOTAL | 850,000 |
That’s KSh 850,000 in tax alone—before port handling, clearance, registration, and insurance!
🚗 Real-World Example: Toyota Axio 2017
Let’s walk through a real example using our Code & Clutch KRA Calculator.
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🇯🇵 Origin: Japan
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🛞 Model: Toyota Axio
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🏷️ Year: 2017
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💸 CIF: $5,000
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KRA CRSP: KSh 950,000
🧮 Result:
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Import Duty: KSh 237,500
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Excise: KSh 296,875
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VAT: KSh 244,000
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IDF: KSh 21,375
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RDL: KSh 14,250
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Total Estimated Tax: KSh 813,000
Final cost after clearing & registration: Approx. KSh 1,150,000
📌 Common Mistakes When Calculating Tax
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Using purchase price instead of CRSP
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Ignoring Excise variations by engine size
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Forgetting IDF and RDL fees
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Not factoring port & clearance costs
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Skipping exchange rate buffers (USD-KES)
✅ Solution: Always use a trusted car import calculator and verify your tax range with a clearing agent.
🛠️ How Code & Clutch Makes It Easy
We’ve built a free, easy-to-use Car Import Calculator for Kenyans. Just input:
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Car model and year
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Origin country
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Engine size (cc)
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Currency value
And we instantly return:
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Total tax estimate
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Expected port charges
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Exchange rate buffer
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Final estimated cost (KES)
🔗 Coming soon to our mobile app & website.
💬 FAQs
Q: Can I reduce the tax legally?
A: No. KRA uses CRSP valuation, which is fixed. Agents that promise to “reduce tax” are usually committing fraud.
Q: What if I buy a hybrid or electric car?
A: Hybrid cars attract reduced excise duty. Electric vehicles enjoy 0% excise and import duty in Kenya (as of 2025)!
Q: What is CRSP and where do I get it?
A: Current Retail Selling Price (CRSP) is published by KRA. Contact us at Code & Clutch to access our up-to-date CRSP database.
Q: Do older cars pay more tax?
A: Yes. Older cars can attract higher excise and might even be rejected if older than 8 years.
🏁 Final Thoughts: Don’t Guess—Calculate
Car import tax in Kenya is complex, but with the right tools, you can plan smartly and avoid nasty surprises. Whether you’re buying for yourself, resale, or fleet use, don’t let tax errors ruin your experience.
At Code & Clutch, we’ve helped hundreds of Kenyans import safely by:
✅ Providing real-time tax estimates
✅ Connecting users to verified clearing agents
✅ Offering free consultations before you commit
📲 Need Help?
📞 WhatsApp us: 0717 423 659
📧 Email: connectkenyacars@gmail.com
🌐 Visit: codeandclutch.blogspot.com
🚘 Code & Clutch – Where Cars Meet Code.
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