Importing a car from Japan offers a wide variety of options and competitive prices. Why Japan is the best to import cars from to Kenya lies in the quality and affordability of vehicles available. However, it’s important to understand all the costs involved before making a commitment. Here’s a breakdown of the key expenses you’ll encounter when importing a vehicle from Japan to Kenya.
Key Expenses Involved in Importing a Car
1. Initial Purchase Price
The initial cost includes the car’s purchase price, which varies based on the model, year, mileage, and condition. Japanese auction houses and car exporters provide attractive prices, making these vehicles appealing to Kenyan buyers.
2. Shipping Costs
Next, consider shipping costs, which typically range between $800 and $1,500. These costs depend on the car’s size and the chosen shipping method—either container or Roll-on/Roll-off (RoRo). Most cars arrive at the Port of Mombasa, with shipping taking about 3-6 weeks.
3. Import Duty
Upon arrival, you will need to pay import duty, set at 25% of the Customs Value (CIF). This value includes the vehicle’s cost, insurance, and freight charges.
4. Excise Duty
After paying the import duty, you must also pay excise duty, calculated at 20% of the total Customs Value plus the Import Duty. This charge significantly increases your overall import costs.
5. Value Added Tax (VAT)
Additionally, VAT is charged at 16% on the sum of the Customs Value, Import Duty, and Excise Duty, further raising your total expenses.
6. Railway Development Levy (RDL)
The Railway Development Levy (RDL) applies to all imported vehicles, charged at 1.5% of the Customs Value.
7. Import Declaration Fee (IDF)
You will also incur the Import Declaration Fee (IDF), which is set at 3.5% of the Customs Value or a minimum of KES 5,000, whichever is higher.
8. Registration Fee
Once you have settled these fees, you must register the car in Kenya. Registration fees vary based on the vehicle type, typically ranging from KES 10,000 to KES 25,000.
9. Inspection Fee
Before shipping, the car must pass an inspection by the Japan Export Vehicle Inspection Center (JEVIC) or another authorized body to ensure it meets Kenyan roadworthiness and environmental standards. Inspection fees usually range from $150 to $200.
10. Clearing and Forwarding Costs
Finally, once your car arrives in Kenya, you will incur clearing and forwarding costs, usually between KES 30,000 and KES 50,000.
Popular Japanese Car Models in Kenya
Japanese cars are favored in Kenya for their reliability, affordability, and fuel efficiency. Some of the most commonly imported models include:
Conclusion
In conclusion, understanding why Japan is the best to import cars from to Kenya involves recognizing both the benefits and the associated costs. Importing a car entails more than just the purchase price; it includes several additional expenses that can impact your budget. However, with careful planning and consideration of these costs, you can enjoy the advantages of owning a high-quality Japanese car in Kenya.