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How much to clear an imported vehicle in Kenya

Importing a vehicle into Kenya is an attractive option for many due to the availability of affordable, high-quality cars abroad. However, knowing the costs involved in clearing the vehicle is crucial. So, how much does it cost to clear an imported vehicle in Kenya? Let’s explore the key costs and factors that determine the final amount.

Key Factors Affecting the Cost of Clearing a Vehicle

Several factors directly influence the cost of clearing a vehicle. These include:

  1. Customs Duty: This is the largest component of the clearing costs. Kenya Revenue Authority (KRA) imposes customs duty based on the vehicle’s value, age, and engine capacity. Typically, customs duty is 25% of the vehicle’s Customs Value (CIF).
  2. Excise Duty: The excise duty depends on the vehicle’s engine size. Vehicles with engines under 1500 cc are charged 25%, while those with larger engines face a 30% excise duty.
  3. Value Added Tax (VAT): After adding customs and excise duties, VAT is charged at 16% of the total value of the vehicle.
  4. Import Declaration Fee (IDF): IDF is calculated as 2% of the customs value or a minimum of KSh 5,000, whichever is higher.
  5. Railway Development Levy (RDL): The government also charges a 1.5% Railway Development Levy on the vehicle’s customs value. This fee helps fund infrastructure projects.
  6. Age of the Vehicle: The vehicle must be eight years old or newer to be imported. Older vehicles will either incur fines or be seized.

Estimating the Total Cost

To answer how much to clear an imported vehicle in Kenya, you can use online tools from clearing agents or the KRA website. For instance, if you import a vehicle with a CIF value of KSh 1,000,000 and an engine capacity under 1500 cc, the costs might include:

  • Customs Duty (25%): KSh 250,000
  • Excise Duty (25%): KSh 250,000
  • VAT (16% of the total): KSh 240,000
  • IDF (2% of CIF): KSh 20,000
  • RDL (1.5% of CIF): KSh 15,000

In this case, clearing the vehicle will cost around KSh 775,000. However, the final cost may vary based on the vehicle model, condition, and current exchange rates.

Additional Costs

Besides taxes and duties, you need to budget for other expenses:

  • Clearing Agent Fees: Agents handle the customs process. Their fees typically range from KSh 15,000 to KSh 30,000, depending on the services they offer.
  • Registration Fees: After clearing, you’ll need to register the vehicle with the National Transport and Safety Authority (NTSA), which comes with additional charges.
  • Port Storage Fees: If you delay the clearing process, you may also face storage fees at the port, charged per day after a grace period.

Conclusion

In summary, how much to clear an imported vehicle in Kenya depends on several key factors, including the car’s value, engine size, and age. Clearing costs can range between 50% to 70% of the vehicle’s CIF value. Always account for duties, levies, and agent fees to avoid unexpected expenses. For a more accurate estimate, use the KRA’s tools or consult a trusted clearing agent to calculate the total costs.