Motor Vehicle Importation Duty FAQs
- How to find reliable exporter for used cars from Japan?
- What are the procedure and the requirements for importation of a motor vehicle into Kenya?
- Common terms used in Importing Vehicles into Kenya
- What are the custom charges for importing a motor vehicles into Kenya?
- Is a returning resident Kenyan in the diaspora entitled to bring a motor vehicle into Kenya duty free?
Q. How to find reliable exporter for used cars from Japan?
Japanese vehicles industry is one of the biggest industries in the world because of their high quality, performance and reliability, Japanese new & used vehicles are in great demand all over the world. Used cars exporters in Japan:
- TRUST Company
- IBC Japan
- SBT Japan
Q. What are the procedure and the requirements for importation of a motor vehicle into Kenya?
To import a motor vehicle into Kenya, an importer will have to enlist the services of a clearing agent who will process the import documentation through Kenya Customs electronically on the Simba system and clear the goods on your behalf.
Q. Common terms used in Importing Vehicles into Kenya
Current Retail Selling Price (CRSP): The Kenya Revenue Authority (KRA) publishes the current retail-selling price and clearing and forwarding agents use these prices when they calculate or charge duties.
Custom Value: This is the value of an import as determined by customs department of the Kenya Revenue Authority. It is essential in determining the amount of duty that must be paid on an imported item.
Age of Registration: The year the car was manufacture it not necessarily the same year as the car registration data. The import duty is calculated using the registration age. Granted, it is illegal to import an 8-year old and beyond motor vehicle into Kenya subject to the Kenya Bureau of Standards (KEBS KS 1515:2000 quality standard).
Engine Capacity: The larger the engine capacity, the higher the import duty.
Excise Duty: According to the Excise Duty Act of 2015 is levied at KSh150, 000 for a car less than 3 years old while Ksh200,000 for a car more than 3 years old.
Value Added Tax (VAT): The VAT is the amount the Kenya Revenue Authority (KRA) charges the 16% value added tax (VAT) to the buyer.
Import Declaration Fee (IDF): With Kenyan imports, the clearance agent is not the person responsible for obtaining the Import Declaration Fee license. The importer is responsible for obtaining the license before any goods are imported into Kenya. The IDF is usually a charge of 25% of the CIF value of the goods. This is separate from any other taxes charged on the import including excise, duty and VAT.
Railways Development Levy: This levy was introduced to help the government finance the rail network's upgrade. It has been set at 1.5% of imported goods, meant to fund for the construction of a new railway line from the Port of Mombasa to Uganda.
Maritime Surcharge Levy (MSS Levy): The tax charged to all shippers when items are imported.
Clearing & Freight Forwarding Cost: This takes care of the imports logistics by the Freight Forwarding Company including dealing with the carriers, legalities and insurance.
Delivery Order Fee: This is the fee paid for the release of goods by the shipping company. The custodian of the cargo must verify the delivery order and proof of completion of the customs clearance procedures. Only then will the cargo be released to the importer. The Delivery Order Fee is the cost of verifying the delivery order and having your automobile released.
Q. What are the custom charges for importing a motor vehicle into Kenya?
The duty payable on the importation of a motor vehicle is as follows:
- Import Duty: 25% of the CIF value of the vehicle
- Excise Duty: 20% or 30% of Excise value depending on engine size.
- Value Added Tax (VAT): 16% of the (CIF value + Import Duty + Excise Duty)
- Import Declaration Fee (IDF): 2.25% of the CIF value or Kshs 5,000, whichever is higher, is payable.
Q. Is a returning resident Kenyan in the diaspora entitled to bring a motor vehicle into Kenya duty free?
Yes, you are allowed, among other items, one motor vehicle (excluding buses and mini buses) into the country duty free subject to the following conditions:
- The returning resident citizen must have resided outside Kenya for at least 2 years during which period you should not have visited Kenya for an aggregate of more than 90 days.
- The returning resident citizen must have personally owned and used the motor vehicle for at least 12 months.
- The motor vehicle must not be older than 8 years.
- The returning resident citizen must have attained the age of 18 years.
- The returning resident citizen must not have been granted a similar exemption previously.