Car Importation Tax in Kenya

As a developing country, most of the cars in Kenya are imported with the majority of them being second-hand cars. Among the major costs when importing a car in Kenya is the taxes. Let’s look at the applicable taxes when importing a car into Kenya.

Remember that paying tax Is a mandatory requirement before clearing it through customs. Failure to do so could result in auctioning to clear the tax. Hence, you need to know the tax obligations before starting the importation process.

Requirements to import a second-hand car in Kenya

1. The car must be less than 8 years since the date of registration
2. Must be a right-hand drive car
3. It must meet the Kenya Bureau of Standards requirements

If the car meets these conditions, it is allowed in the country. The next step is normally shipping and tax payments. Learn More on How to Import a Car in Kenya.    

Car Importation Tax in Kenya

The role of tax collection in Kenya sits with the Kenya Revenue Authority. There are various taxes and fees that apply when importing a car in Kenya. These include;

1.  Import duty

25% of the car price. However, some types of vehicles such as ambulances attract 0%

2.  Value added tax

16% applicable rate

3. Import declaration fees

• % of the car price

4. Railway development levy

2% of the car price

5. Exercise Duty

Below is a breakdown of applicable exercise duty depending on the car category as per the Kenya Revenue Authority Guidelines.

1. 20% for vehicles, with spark-ignition internal combustion reciprocating piston engine, of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc, assembled.
2. 25% for vehicles, with spark-ignition internal combustion reciprocating piston engine, of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc, assembled.
3. 35% for vehicles, with spark-ignition internal combustion reciprocating piston engine, of a cylinder capacity exceeding 3,000 cc, assembled.
4. 25% for vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel), of a cylinder capacity, not exceeding 1,500 cc, assembled.
5. 25% for vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel), of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc, assembled.
6. 35% for Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel), of a cylinder capacity exceeding 2,500 cc, assembled.
7. 25% for vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, other than those capable of charging by plugging to an external source of electric power.
8. 25% for vehicles, with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion, other than those capable of being charged by plugging to an external source of electric power.
9. 10% for vehicles, with an only electric motor for propulsion.
10. 25% for vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, capable of charging by plugging to an external source of electric power.
11. 25% for vehicles, with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion, capable of being charged by plugging to an external source of electric power.