💰 Understanding KRA Car Import Taxes in Kenya (2025 Breakdown + Real Examples)
💰 Understanding KRA Car Import Taxes in Kenya (2025 Breakdown + Real Examples)
Want to import a car to Kenya in 2025? Learn how KRA calculates your taxes, how much you’ll really pay, and how to use tools like Code & Clutch’s calculator to avoid surprises.
🔰 Introduction: Why Understanding Taxes Matters When Importing a Car
Let’s face it — importing a car into Kenya sounds exciting… until the KRA tax bill lands in your hands.
You found your dream car in Japan or the UK. The seller gives you a great price. You calculate shipping. Then boom — you realize taxes add almost 60–80% to your cost.
It’s no secret: KRA taxes are the single most misunderstood part of car importing in Kenya.
If you’ve ever Googled:
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“How much is duty on imported cars in Kenya?”
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“What is CRSP?”
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“How does KRA calculate tax?”
…then this guide is for you.
We’ll walk you through:
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Every KRA tax applied to imported vehicles in 2025
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Real examples of tax breakdowns (using a Toyota Fielder, BMW 3 Series, and Subaru Forester)
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The Current Retail Selling Price (CRSP) method
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Tips to save money and avoid getting overcharged
📜 The 6 Key Taxes KRA Charges on Car Imports
When your imported car lands in Mombasa, KRA charges six types of fees. Each is stacked on top of the last.
Here’s the breakdown:
| Tax Type | Rate | Charged On |
|---|---|---|
| 1. Import Duty | 25% | CIF (Cost + Insurance + Freight) |
| 2. Excise Duty | 20%–35% | CIF + Import Duty |
| 3. VAT | 16% | CIF + Import Duty + Excise |
| 4. IDF Fee (Import Dec.) | 2% of CIF | CIF |
| 5. RDL Levy | 1.5% of CIF | CIF |
| 6. Railway Development Levy | KRA internal | Part of RDL and IDF |
🎯 CIF means the total cost of the car, insurance, and freight to Mombasa.
🧠What Is CRSP? (Current Retail Selling Price)
KRA doesn’t always tax you based on your invoice.
Instead, they use the Current Retail Selling Price (CRSP) — their own value book showing what similar vehicles are worth locally. It’s reviewed regularly.
Example:
If you import a Toyota Fielder for KSh 850,000 from Japan, but KRA lists its CRSP as KSh 1.3M, you’re taxed based on 1.3M, not your 850K.
That’s why so many importers get shocked at the port.
✅ Use the Code & Clutch Car Import Calculator to see real-time estimates of KRA’s taxes based on updated CRSP.
🚗 Real Tax Example: Toyota Fielder 2017 from Japan
Let’s break down a real case:
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Car: Toyota Fielder 1.5L (2017)
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Purchase Price: KSh 850,000
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Insurance + Freight (approx): KSh 150,000
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CIF Total: KSh 1,000,000
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KRA CRSP: KSh 1,300,000
Step-by-step Tax Calculation:
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Import Duty (25% of CIF)
→ 25% of 1,000,000 = KSh 250,000 -
Excise Duty (20% of [CIF + Import Duty])
→ 20% of 1,250,000 = KSh 250,000 -
VAT (16% of [CIF + Import Duty + Excise])
→ 16% of 1,500,000 = KSh 240,000 -
IDF Fee (2% of CIF)
→ 2% of 1,000,000 = KSh 20,000 -
RDL Levy (1.5% of CIF)
→ 1.5% of 1,000,000 = KSh 15,000
🧮 Total Taxes:
KSh 250K + 250K + 240K + 20K + 15K = KSh 775,000
So your Fielder that cost you KSh 850K overseas will land in Kenya costing around KSh 1.625M.
🚘 Example 2: BMW 3 Series (2018, 2.0L Petrol, UK Import)
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CIF Value: KSh 1.7M
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CRSP Estimate: KSh 2.2M
Taxes:
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Import Duty (25%) = KSh 425,000
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Excise (25%) = KSh 531,250
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VAT (16%) = KSh 692,000
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IDF (2%) = KSh 34,000
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RDL (1.5%) = KSh 25,500
Total Tax: ~KSh 1.71M
Final Landed Cost: ~KSh 3.4M
📊 What Determines the Excise Duty Rate?
Excise is based on engine size:
| Engine Capacity | Excise Duty (%) |
|---|---|
| Below 1500cc | 20% |
| 1501cc – 2000cc | 25% |
| 2001cc – 2500cc | 30% |
| Above 2500cc | 35% |
💡 Don’t guess! Use Code & Clutch’s calculator to know your excise bracket.
⚠️ Penalties & Hidden Charges to Avoid
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Overage Vehicles
You can't import a car older than 8 years from its date of manufacture. A 2016 model is illegal in 2025. -
Left-Hand Drive Vehicles
Not allowed in Kenya — unless for special purposes (ambulance, etc.). -
Emission Failures
Cars from UK/UAE must pass KEBS inspection. Some diesel cars with poor emissions fail. -
Storage Charges
If you delay paying your taxes at the port, you’ll be charged KSh 3,000+ per day for storage.
💡 Smart Tips to Lower Your Tax Burden
✅ Import from Japan – Often lower CRSP than UK or UAE
✅ Choose engine sizes below 1500cc – Less excise = less VAT
✅ Import just after your car hits 8 years – It’s legal and CRSP drops
✅ Use trusted agents (like Code & Clutch) – Avoid fake invoices or misdeclarations that result in KRA penalties
✅ Get a proper quote in advance – Don’t guess the tax
🧠Why So Many Kenyans Use Code & Clutch’s Import Calculator
Most import calculators are inaccurate. They guess based on invoice value. But KRA taxes are based on CRSP and other hidden formulas.
Here’s what makes Code & Clutch different:
✅ Updated KRA formulas (2025-compliant)
✅ Country selector: UK, Japan, UAE
✅ Engine size & year filtering
✅ WhatsApp assistant to explain your results
✅ Integration with Pesapal for quotes + payment
🧮 Try it now: Code and Clutch Car Import Calculator
💬 Common Questions Answered
Q1: Can I pay less tax by declaring a lower car value?
❌ No. KRA uses CRSP, not your invoice. Under-declaring is a crime.
Q2: Is it cheaper to import from UK than Japan?
✅ Sometimes yes, especially for diesel or luxury vehicles. But excise on higher engines is more.
Q3: Do I pay taxes myself or through an agent?
✅ You pay through your clearing agent. At Code & Clutch, we handle this entire process for you.
Q4: Can I get a quote before I import?
✅ Yes! We give you a detailed quote showing CIF, taxes, clearance fees, and total.
👉 Request a Quote
✅ Final Thoughts: Don’t Let KRA Taxes Scare You
KRA taxes are real — but they don’t have to be confusing.
With the right tools, trusted partners, and clarity on how the tax system works, you can:
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Avoid surprise charges
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Budget correctly
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Import smart and stress-free
At Code & Clutch, we don’t just explain taxes — we calculate, verify, and handle the process for you.
🚀 Take Action Now
🧮 Try Our KRA Tax Calculator Now:
codeandclutch.blogspot.com/p/archives.html
📞 Need Help or a Custom Quote?
WhatsApp Us Here: +254717423659
💳 Ready to Pay After Quote? Use Pesapal:
https://store.pesapal.com/supportourproject
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