If you are thinking about importing a car into Kenya, one of the first questions you will ask is simple:
How much will I pay in duties and taxes?
Many people assume taxes are calculated from the price you bought the vehicle for, but that is not how the system works. Kenya uses a structured formula that includes several taxes calculated on a government reference value.
Understanding how these taxes work can help you avoid surprises and decide whether importing a vehicle is better than buying locally.
As a company that handles the entire vehicle import process from sourcing, shipping, customs clearance, and delivery to your doorstep, we help clients understand these costs before they commit to buying a vehicle.
Let’s break it down.
The Main Taxes Charged on Imported Vehicles in Kenya
When a vehicle arrives at the port of Mombasa, the Kenya Revenue Authority applies three main taxes.
Import Duty – 25%
This is the first tax applied to imported vehicles.
Import duty is currently 25% of the customs value of the vehicle.
The customs value is usually calculated from the CRSP price (Current Retail Selling Price) rather than the auction purchase price.
Excise Duty – 20% or 25%
Excise duty depends on the engine size.
Typical rates include:
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20% for vehicles with engines up to 1500cc
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25% for vehicles above 1500cc
Most of the vehicles our clients import fall into the SUV category, such as the Mazda CX-5, Prado, and Land Cruiser, which usually fall under the 25% excise duty bracket.
VAT – 16%
After import duty and excise duty are calculated, VAT of 16% is applied on the total of:
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Customs value
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Import duty
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Excise duty
This means VAT is applied on top of other taxes, which is why the final tax amount can appear quite high.
Why Purchase Price Is Not Always Used
One of the most confusing parts of importing a vehicle is how taxes are calculated.
Many first-time importers assume that KRA will use the price they paid at auction.
In reality, KRA uses the CRSP database (Current Retail Selling Price) to determine the value of most vehicles.
This is a standardized valuation system that assigns a reference value to different vehicle models and years.
Because of this, two people importing the same car may pay similar taxes even if one bought the vehicle cheaper at auction.
This is why it’s important to work with someone who understands how CRSP values affect the final cost before you buy the vehicle.
Real Example: Importing a 2019 Mazda CX-5
Here is a real example from one of our imports.
Vehicle Details
Vehicle: Mazda CX-5
Year: 2019
Engine: 2200cc Diesel
Import Costs
Auction price (FOB): KSh 1,667,640
Shipping cost: KSh 237,380
CIF value: KSh 1,905,020
Taxes Paid
Total duties and taxes: KSh 907,000
Final Landed Cost
KSh 2,812,020
For many clients comparing prices locally, vehicles like this are often slightly cheaper to import than buying from a dealer, mainly because local sellers usually add their own mark-ups.
Other Costs to Consider When Importing
Taxes are the largest cost, but they are not the only expenses involved.
Other costs include:
Shipping
Shipping varies depending on the vehicle size and the country of origin.
Inspection Fees
Vehicles imported into Kenya must pass inspection before shipment.
Port and Clearing Charges
These include documentation, handling, and clearing services.
Storage Charges (If Delayed)
One cost that surprises many importers is port storage.
If a vehicle stays at the port longer than expected, storage charges can accumulate quickly. This usually happens when paperwork or payments are delayed.
When the process is handled properly, vehicles typically clear the port quickly and avoid these additional charges.
The Most Common Mistake First-Time Importers Make
One of the biggest mistakes people make when importing a vehicle is choosing a car without checking its history or auction sheet.
Auction sheets contain important information such as:
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Accident history
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Repairs or structural damage
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Interior condition
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Mileage verification
Without this information, a car may appear cheap but could have serious hidden issues.
That’s why part of our sourcing process involves carefully reviewing auction data before recommending any vehicle to a client.
Are Vehicle Import Taxes in Kenya Too High?
In our experience, many buyers are of the opinion that vehicle taxes in Kenya are both high and unnecessarily complicated.
The system involves multiple taxes stacked on top of each other, which makes it difficult for first-time importers to estimate the final cost on their own.
However, with proper guidance and accurate calculations before purchasing a vehicle, the process becomes much more predictable.
Is It Cheaper to Import or Buy Locally?
For many mid-size SUVs and premium vehicles like:
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Mazda CX-5
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Toyota Prado
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Toyota Land Cruiser
importing can often be slightly cheaper than buying locally.
This is mainly because local dealers usually add margins to cover:
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sourcing costs
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shipping
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taxes
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profit mark-ups
When importing directly, you pay the actual costs without dealer mark-ups.
Importing a Vehicle Without the Guesswork
Importing a car can feel complicated if you are trying to figure everything out on your own.
We handle the entire process from sourcing, shipping, customs clearance, and delivery to your doorstep, making sure clients understand the full cost before they commit to purchasing a vehicle.
If you are comparing buying locally vs importing, we can help you calculate the real cost and guide you through the safest option.
Estimate Your Vehicle Import Cost
Example line:
If you want to estimate the duties and taxes on an imported vehicle, contact us with:
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vehicle model
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year of manufacture
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engine size
We can calculate the approximate landed cost before you buy.
FAQ
1. How much tax do you pay to import a car in Kenya?
Vehicle import taxes in Kenya typically include 25% import duty, 20–25% excise duty, and 16% VAT. The final amount depends on the vehicle’s CRSP valuation.
2. Does KRA use the purchase price to calculate taxes?
No. KRA usually uses the Current Retail Selling Price (CRSP) database to determine the customs value of the vehicle.
3. Is importing a car cheaper than buying locally?
In many cases, importing can be slightly cheaper because local dealers include additional mark-ups to cover sourcing, shipping, taxes, and profit margins.
4. Can I reduce the taxes when importing a car into Kenya?
Vehicle import taxes in Kenya are fixed by the government and calculated by the Kenya Revenue Authority using the CRSP valuation system. Because of this, the taxes themselves cannot be reduced. However, choosing the right vehicle model, engine size, and year of manufacture can help lower the overall import cost.
5. What is the 8-year rule for imported vehicles in Kenya?
Kenya only allows the importation of vehicles that are not more than 8 years old from the year of first registration. For example, in 2026 the oldest vehicle that can be imported must be first registered in 2019 or newer. Vehicles older than this are not allowed to be registered in Kenya.
