🚘 How to Calculate KRA Car Import Duty in Kenya (2025 Guide)

Thinking of importing your dream car to Kenya in 2025? Before you get carried away by sleek dashboards and turbocharged engines, take a pause — because KRA’s tax bill is waiting for you at the port. Car import duty is one of the most misunderstood (and expensive) parts of the process.

In this detailed guide, we’ll break it all down — step-by-step, in simple terms — so you can confidently estimate your import duty and avoid nasty surprises.

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🔍 Why You Must Understand Import Duty Before Buying a Car

Many Kenyan buyers focus on the car’s overseas price, thinking they’ve scored a great deal — only to be hit with double or triple that amount in taxes. Importing a vehicle without calculating duty in advance can stall clearance, cost you storage penalties, or even result in seizure.

With the right knowledge, though, you can:

• Budget accurately

• Choose duty-friendly vehicles

• Avoid common overcharges

• Stay compliant with KRA and KEBS rules

Let’s dive in.

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🧾 What Are the Main Car Import Taxes in Kenya?

When your vehicle lands at the Port of Mombasa, KRA calculates several duties based on a reference price, NOT the price you paid abroad. These taxes include:

1. Import Duty – 25%

2. Excise Duty – 20% to 35%

3. VAT – 16%

4. IDF (Import Declaration Fee) – 2%

5. Railway Development Levy (RDL) – 1.5%

💡 All of the above are calculated cumulatively, meaning one tax is charged on top of the previous one. That’s why the final amount can be shockingly high.

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📌 The Starting Point: What Is CRSP?

CRSP stands for Current Retail Selling Price. This is a value published by the Kenya Revenue Authority and it’s based on local showroom prices for brand-new models. Even if you buy a used car from Japan or the UK, KRA begins its calculations from the CRSP of a new model.

They then depreciate it based on age and usage.

Example:

If a new Toyota Fielder’s CRSP is KSh 3,000,000 and it’s 6 years old, the depreciation might drop the value to around KSh 1.2M. That becomes the customs value.

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📉 KRA Depreciation Schedule (2025)

Vehicle Age	Depreciation Rate
0–1 year	0%
1–2 years	20%
2–3 years	30%
3–4 years	40%
4–5 years	50%
5–6 years	60%
6–7 years	70%
7–8 years	80%

🚫 Important: Kenya does not allow importation of vehicles older than 8 years.

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🧮 How to Calculate Import Duty (Step-by-Step)

Assume:

• You’re importing a 2018 Toyota Fielder Hybrid

• Engine: 1500cc

• Country of origin: Japan

• CRSP: KSh 2,500,000

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Step 1: Determine the Customs Value

Apply 60% depreciation (since it’s 6 years old):

KSh 2,500,000 × 40% = 1,000,000 (customs value)

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Step 2: Add Freight and Insurance

Assume:

• Freight: KSh 120,000

• Insurance: KSh 20,000

→ CIF Value = Customs Value + Freight + Insurance

= 1,000,000 + 120,000 + 20,000 = 1,140,000

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Step 3: Apply Import Duty (25% of CIF)

Import Duty = 25% × 1,140,000 = KSh 285,000

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Step 4: Add Excise Duty

Excise depends on engine capacity:

• Below 1500cc: 25%

• 1501cc–1800cc: 30%

• 1801cc+: 35%

Your car is 1500cc → Excise = 25%
= 25% of (CIF + Import Duty)
= 25% of (1,140,000 + 285,000) = KSh 356,250

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Step 5: Add VAT (16%)

VAT = 16% of (CIF + Import Duty + Excise)

= 16% of (1,140,000 + 285,000 + 356,250)
= 16% of 1,781,250 = KSh 284,999

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Step 6: Add IDF (2% of CIF)

= 2% of 1,140,000 = KSh 22,800

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Step 7: Add RDL (1.5% of CIF)

= 1.5% of 1,140,000 = KSh 17,100

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✅ Total KRA Taxes = Import Duty + Excise + VAT + IDF + RDL

285,000 + 356,250 + 284,999 + 22,800 + 17,100 = KSh 966,149

👉 So, even though your CIF value was KSh 1.14M, you’ll pay almost KSh 1M in taxes.

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🔥 Pro Tips to Save on KRA Tax

1. Choose 1300cc–1500cc Cars

They attract lower excise duty and save you fuel money too.

2. Use the 6–7 Year Depreciation Window

Maximum allowed depreciation (70%–80%) lowers the customs value.

3. Avoid Luxury Brands with High CRSP

CRSP values for brands like Mercedes, BMW, and Audi are inflated locally.

4. Skip Engine Modifications

Turbocharged or tuned engines often fall into a higher tax bracket.

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❌ Common Mistakes People Make When Estimating Tax

• Using purchase price instead of CRSP

• Forgetting excise entirely

• Assuming tax is only 25%

• Trusting outdated calculators

• Skipping pre-import consultation

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🇯🇵 Japan vs 🇬🇧 UK vs 🇦🇪 UAE: How Origin Affects Duty

KRA does not charge different tax rates for different countries, but:

Country	Pro	Con
🇯🇵 Japan	Clean units, verified auctions	Slightly higher freight
🇬🇧 UK	Good specs, affordable units	Must pass QISJ inspection
🇦🇪 UAE	Low prices	Harsh climate, high mileage

🌍 Choose origin based on the car condition, not just price.

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💡 Want to Skip the Math? Use Code & Clutch’s Calculator

We’ve built a powerful Car Import Tax Calculator just for Kenyan buyers. It’s:

• Free

• Updated for 2025

• Supports Japan, UK, UAE cars

• Includes port clearance & NTSA fees

👉 Launch Calculator on Code and Clutch (Add actual link)

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👷 How Code & Clutch Helps You Beat the Tax Confusion

We’re not just another blog — we’re a full support system for importers in Kenya. Here’s what we offer:

• ✅ Instant Tax Estimates

• ✅ Pre-import advice

• ✅ Clearing agent connections

• ✅ Full quote with Pesapal payment

• ✅ WhatsApp assistant (0717423659)

“Our mission is simple: No more car import stress in Kenya.”

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📌 Final Thoughts

KRA car import duty is the single biggest expense after buying the car — yet most Kenyans only find out the real cost too late. With the right information and smart planning, you can import safely, affordably, and legally in 2025.

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🛠️ Quick Recap:

• Understand CRSP and depreciation

• Calculate all taxes (duty, excise, VAT, IDF, RDL)

• Use tools like Code & Clutch’s calculator

• Ask questions before you buy abroad

💬 Still confused? WhatsApp us anytime: 0717423659