Step-by-Step Guide to Calculating Import Taxes for Cars in Kenya (2025 Edition)

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🇰🇪 Why You MUST Understand Import Duty Before Buying That Car

Every day, hopeful car buyers in Kenya fall into one common trap—importing a car without fully understanding the true cost after taxes. The result? Financial shock at the port, unexpected penalties, or worse, the car being impounded.

This guide breaks down the KRA (Kenya Revenue Authority) import tax system in 2025, showing you exactly how to calculate the taxes before committing to a purchase. Whether you're importing from Japan, the UK, or Dubai, this is the essential guide every Kenyan buyer needs.

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📦 What Makes Up the Total Import Cost?

When importing a car into Kenya, the total cost isn’t just about buying the car—it includes a combination of purchase cost, shipping, inspection, clearance, and most importantly, taxes.

Here’s the breakdown:

Component	Description
CIF (Cost + Insurance + Freight)	The car’s cost abroad plus shipping to Mombasa port
Import Duty (25%)	25% of the CIF value
Excise Duty (20%–35%)	Based on engine size and car type
VAT (16%)	Applied after adding Import + Excise
IDF Fee (2%)	Import Declaration Fee (CIF-based)
Railway Development Levy (1.5%)	Applied to CIF

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📊 Quick Example: How Much to Import a 2018 Toyota Fielder (1500cc) from Japan

Let’s assume:

• Car price: $6,000

• Insurance + Freight to Mombasa: $1,000

• Exchange Rate: 1 USD = KSh 145

Step 1: CIF (Cost + Insurance + Freight)

$6,000 + $1,000 = $7,000
CIF in KSh = 7,000 × 145 = KSh 1,015,000

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Step 2: Import Duty (25% of CIF)

25% × 1,015,000 = KSh 253,750

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Step 3: Excise Duty

• For a 1500cc car < 3 years old, excise is 25%
  Excise = 25% × (CIF + Import Duty)
  = 25% × (1,015,000 + 253,750) = 25% × 1,268,750
  = KSh 317,188

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Step 4: VAT (16% of [CIF + Import Duty + Excise])

= 16% × (1,015,000 + 253,750 + 317,188)
= 16% × 1,585,938 = KSh 253,750

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Step 5: IDF Fee (2% of CIF)

= 2% × 1,015,000 = KSh 20,300

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Step 6: Railway Development Levy (1.5% of CIF)

= 1.5% × 1,015,000 = KSh 15,225

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✅ Total Import Taxes = KSh 859,213

Total Car Cost = CIF + Taxes = KSh 1,015,000 + 859,213 = KSh 1,874,213

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⚠️ Hidden Costs to Consider

• Clearing Agent Fees: KSh 10,000 – 25,000 depending on agent

• Port Storage Fees: If you delay clearance

• NTSA Charges: For inspection, registration, logbook

• Number Plate & Logbook Transfer Fees

Always plan an extra KSh 50,000 – 80,000 buffer beyond tax estimates.

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📌 Tax Rates You MUST Know in 2025

Engine Size	Excise Duty Rate
Below 1500cc	25%
Above 1500cc	35%
Hybrids below 1000cc	10%
Electric Vehicles	10% or waived

👉 Hybrids and electric cars can save you hundreds of thousands.

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🧠 Import Tax Calculator: Your New Best Friend

Instead of guessing, use the Code & Clutch Car Import Calculator on our website. It auto-calculates based on:

• Car make and model

• Year of manufacture

• Engine capacity

• Source country

• Exchange rate

🧮 Try the Live Import Tax Calculator Now

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💡 Tips to Reduce Your Car Import Taxes

1. Import Cars Just Under 1500cc: Like the 1496cc Toyota Axio or Fielder

2. Opt for Hybrid Versions: Tax relief + better fuel economy

3. Buy Auction Grade 4.5 or Higher: Higher grades often equal fewer repairs post-import

4. Avoid Modifications: Modified cars attract higher taxes

5. Use Authorized Clearing Agents: Avoid delays, penalties, and bribes

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📄 Documents Needed for Importation

To clear a car at the Mombasa port, you must present:

• Original Bill of Lading

• KRA Pin Certificate

• Commercial Invoice

• NTSA TIMS Account

• Import Declaration Form (IDF)

• KEPROBA COC Certificate (pre-shipping inspection)

• Logbook from country of origin

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🌍 Differences by Country of Origin

Country	Freight Cost	Import Demand	Notes
Japan	Low	Highest	Reliable auction grading, affordable hybrids
UK	Moderate	Growing	Right-hand drive, but higher mileage
UAE/Dubai	Low	Rising	Cheaper but fewer hybrid options
Singapore	Moderate	Low	Heavily used, lots of electronics

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🛑 Common Mistakes to Avoid

• Buying Without a Valuation Report: KRA may reject your figures and overvalue

• Underdeclaring Car Value: Leads to penalties or seizure

• Failing to Check Year Limit: Kenya doesn’t allow cars older than 8 years

• Using Unlicensed Importers: Many offer sweet deals then disappear

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🗺️ How the Import Process Works (Simplified)

1. Find the Car & Negotiate Price

2. Pay for the Car & Request Export Documents

3. Car is Shipped to Mombasa Port

4. Car Arrives + Inspection & Clearance Begins

5. Pay KRA Taxes

6. NTSA Registration, Plates, and Logbook Issued

7. Car Delivered to You or Picked from Port

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📣 Final Thoughts: Knowledge is Power, Tax Wisely

In 2025, smart importation is less about finding the cheapest car, and more about calculating total landing costs accurately. This includes knowing your tax obligation in advance, avoiding rookie mistakes, and planning your budget realistically.

With tools like the Code & Clutch Import Calculator, verified agents, and this step-by-step guide, you're ready to import like a pro.

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🔗 Useful Resources

• 🚗 Try Our KRA Import Calculator

• 📱 Chat With Our Import Assistant on WhatsApp

• 📑 NTSA TIMS Portal for Registration

• 💼 Hire a Trusted Clearing Agent