How KRA Calculates Car Import Taxes

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 as CIF (Cost, Insurance & Freight) . This covers the value of the car to the port of Mombasa. It is the value in your invoice. 

Once the car has landed in Mombasa the clearance part is more complex but we will break it down for you. 

KRA uses what is called a Current Retail Selling Price (CRSP), a database that lists the showroom (brand-new) costs of various models of cars. The CRSP 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. 

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.

The customs value(CRSP) will then be subjected to several charges as follows:

• Import duty- 35%
• Excise value- 20% + import duty
• Value added tax – 16% + import duty + excise duty
• IDF (Import declaration fee)-3.5%
• Railway Development Levy-2%
• Additional charges- Marine Levy & Radiation Check

• Other Costs

   These include:

  • Port charges– This is paid to the CFS (container freight station) where your car is being stored and varies based on the size of your vehicle
  • Shipping– This is paid to the shipping line that shipped your car
  • Registration fee– Paid to NTSA for registration & physical plates
  • Agency fees– Fees paid to the clearing & forwarding company that will clear your car from the port
  • Transportation 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
  • Insurance– This will be issued by your preferred insurance agent

Therefore CIF(invoice value) + CRSP + taxes/fees  = the total cost of the importation.