{"id":8375,"date":"2024-10-29T17:39:02","date_gmt":"2024-10-29T14:39:02","guid":{"rendered":"https:\/\/www.magaripoa.com\/?p=8375"},"modified":"2025-06-09T11:33:40","modified_gmt":"2025-06-09T08:33:40","slug":"how-kra-calculates-car-import-taxes","status":"publish","type":"post","link":"https:\/\/www.magaripoa.com\/gari\/how-kra-calculates-car-import-taxes\/","title":{"rendered":"How KRA Calculates Car Import Taxes"},"content":{"rendered":"<p><span style=\"font-size: 12pt; color: #000000;\">The first thing is to identify the car that you want to import either by buying via online showrooms or online auction, bearing in mind that only car 7 years or newer are allowed in Kenya. the are many websites trading in Japanese used cars.<\/span><\/p>\n<p><span style=\"color: #000000; font-size: 12pt;\">There is the cost of buying the vehicle, referred to as CIF (Cost, Insurance &amp; Freight) . This covers the value of the car to the port of Mombasa. It is the value in your invoice.\u00a0<\/span><\/p>\n<p><span style=\"color: #000000; font-size: 12pt;\">Once the car has landed in Mombasa the clearance part is more complex but we will break it down for you.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000; font-size: 12pt;\">KRA uses what is called a\u00a0Current Retail Selling Price (<strong>CRSP<\/strong>),\u00a0a database that lists the showroom (brand-new) costs of various models of cars. The\u00a0CRSP prices are what form a basis of taxing second-hand imports based on a depreciation model. KRA depreciates the CRSP price of a car by 10% per year (since the year of manufacture). The month and year of manufacturer\/ registration is crucial in determining taxes payable. The month, particularly, is something that you should pay attention to.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000; font-size: 12pt;\">For a 7 year old car, the CRSP price will depreciate by 70%, 6 year old will depreciate by 60%, 5 year old by 50%, etc. Therefore, the older a car is, the cheaper it is, and the newer a vehicle is, the more expensive it is.<\/span><\/p>\n<p><span style=\"color: #000000; font-size: 12pt;\">The\u00a0customs value(CRSP)\u00a0will then be subjected to several charges as follows:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000; font-size: 12pt;\">Import duty- 35%<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\">Excise value- 20% + import duty<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\">Value added tax \u2013 16% + import duty + excise duty<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\">IDF (Import declaration fee)-3.5%<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\">Railway Development Levy-2%<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\">Additional charges- Marine Levy &amp; Radiation Check<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span style=\"color: #000000; font-size: 12pt;\"><strong>Other Costs<\/strong><\/span><\/h3>\n<p><span style=\"color: #000000; font-size: 12pt;\">\u00a0These include:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000; font-size: 12pt;\"><strong>Port charges<\/strong>\u2013 This is paid to the CFS (container freight station) where your car is being stored and varies based on the size of your vehicle<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\"><strong>Shipping<\/strong>\u2013 This is paid to the shipping line that shipped your car<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\"><strong>Registration fee<\/strong>\u2013 Paid to NTSA for registration &amp; physical plates<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\"><b>Agency fees<\/b>\u2013 Fees paid to the clearing &amp; forwarding company that will clear your car from the port<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\"><strong>Transportation<\/strong> to your location (either by road or car carrier)- You can choose to drive your car\/ have it driven from Mombasa or use a carrier<\/span><\/li>\n<li><span style=\"color: #000000; font-size: 12pt;\"><strong>Insurance<\/strong>\u2013 This will be issued by your preferred insurance agent<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000; font-size: 12pt;\"><strong>Therefore CIF(invoice value) + CRSP + taxes\/fees\u00a0 = the total cost of the importation.<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The first thing is to identify the car that you want to import either by buying via online showrooms or online auction, bearing in mind that only car 7 years or newer are allowed in Kenya. the are many websites trading in Japanese used cars. There is the cost of buying the vehicle, referred to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":8379,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","cybocfi_hide_featured_image":"yes","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[7,1905,1776],"tags":[],"class_list":["post-8375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-news","category-ntsa-kra-services"],"jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pej6K6-2b5","jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.magaripoa.com\/gari\/wp-content\/uploads\/import-duty-calculator-magaripoa.jpg?fit=1228%2C854&ssl=1","_links":{"self":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/posts\/8375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/comments?post=8375"}],"version-history":[{"count":0,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/posts\/8375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/media\/8379"}],"wp:attachment":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/media?parent=8375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/categories?post=8375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/tags?post=8375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}