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How to import a used car into Kenya

Victor Mochere by Victor Mochere
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How to import a used car into Kenya

Many Kenyans prefer to import second-hand vehicles as they are cheaper compared to the ones in local car dealerships. By cutting out the middleman, buyers can save up to 25% in cost. The process of importing however takes a bit more time and can be quite confusing for many first-time importers. To import a used car into Kenya you need to follow a set of rules and regulations set up by the government. By going through them, you are able to make a well-informed decision when choosing your vehicle. Further, there are things you need to know before importing a car into Kenya.

Rules and regulations on car imports into Kenya

The vehicles imported into Kenya must comply with the Kenya Bureau of Standards (KEBS) standard code of practice for inspection of road vehicles, which ensures that the vehicle meets safety and environmental standards. The code spells out the major criteria for acceptance of vehicles for importation into Kenya:

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a. Age limit

The motor vehicle must be less than 8 years from the date of manufacture or year of first registration. Moreover, the gap between the year of manufacture and the year of registration should be 1 year or less. Failure to follow this and your car will not be allowed into the country.

b. Right Hand Drive

Any motor vehicle imported into Kenya should be a right hand drive. Any vehicle that is left hand is not eligible for registration unless they are for special purpose vehicles approved by the Government of Kenya.

c. Road worthiness

Any used car that is imported into Kenya must pass the safety and mechanical inspection that is set up by the government. If the vehicle fails, it will not be cleared by customs.

Taxes applicable in motor vehicle importation

Duties and taxes are levied on any imported and exported goods before releasing them from Customs; except goods qualifying for special privilege according to the laws and regulations, whereby their duties and taxes are exempted. The following taxes/duties are payable for motor vehicle imports based on customs value.

a. Import duty

The vehicle import duty varies by the vehicle you have imported; import duty depends on a few factors, which determine the Current Retail Selling Price (CRSP) of the vehicle straight from the manufacturing plant:

  • Month/Year of Manufacture and Registration: Dec/2013, Jun/2014, etc.
  • Vehicle Make: Mercedes, BMW, Toyota, Land Rover, Subaru, Nissan, etc.
  • Vehicle Model: Allion, Premio, Advan, Bluebird, Golf, etc.
  • Vehicle Engine Capacity: 1200cc, 1600cc, 2000cc, etc.

Import duty is calculated at 25% of the Customs value (CIF) of the vehicle i.e. 25% of (Invoice value + Insurance + Freight charges).

b. Excise duty

Motor cars and other motor vehicles principally designed for the transport of persons, calculated at 20% of (Customs Value + Import Duty).

  • Other vehicles, with spark-ignition internal combustion reciprocating piston engine, of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc, assembled – 20%.
  • Other vehicles, with spark-ignition internal combustion reciprocating piston engine, of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc, assembled – 25%.
  • Other vehicles, with spark-ignition internal combustion reciprocating piston engine, of a cylinder capacity exceeding 3,000 cc, assembled – 35%.
  • Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel), of a cylinder capacity not exceeding 1,500 cc, assembled – 25%.
  • Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel), of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc, assembled – 25%.
  • Other vehicles, with compression-ignition internal combustion piston engine (diesel or semi-diesel), of a cylinder capacity exceeding 2,500 cc, assembled – 35%.
  • Other vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, other than those capable of being charged by plugging to external source of electric power – 25%.
  • Other vehicles, with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion, other than those capable of being charged by plugging to external source of electric power – 25%.
  • Other vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, capable of being charged by plugging to external source of electric power – 25%.
  • Other vehicles, with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion, capable of being charged by plugging to external source of electric power – 25%.
  • Other vehicles, with only electric motor for propulsion – 10%.

c. Value Added Tax (VAT)

VAT is calculated at 16% of (Customs Value + Import Duty + Excise Duty).

d. Import Declaration Fee (IDF)

IDF is calculated at 3.5% of the CIF value or Ksh 5,000, whichever is higher.

e. Railways Development Levy (RDL)

RDL is calculated at 2% of the CIF value.

f. Other fees

Additional costs that might not come up on your duty calculations:

  • CFS (container freight station) fees upto Ksh 35,000 depending on the car model, paid to the port.
  • About Ksh 15,000 for clearing and forwarding agents. Contact your clearing and fowarding agent in advance, so they can track your shipment on high seas.
  • About Ksh 3,000 (varies) per day at Mombasa Port car park.
  • You might want to budget for minor repairs too.

Documents required

The documents you need clear and register an imported car at the port of Mombasa include;

  1. Original national ID/passport.
  2. Copy of your KRA PIN certificate/Copy of Certificate of Incorporation (applicable to companies).
  3. Original Bill of Lading/Air Waybill and the car registration documents from its previous home country.
  4. Original Commercial Invoice.
  5. Original Logbook from the country of importation (stating previous owner’s name, vehicle chassis, and engine serial number) that has been cancelled from the country of origin, as this will be required by National Transport and Safety Authority to give you an original Kenyan Logbook.
  6. Pre-shipment inspection certificate (Certificate of Road Worthiness) provided by the previous owner.
  7. Port release order, evidence of insurance cover, import declaration form, Clean Report of Findings (CRF), and import duty receipt.
  8. Vehicle Inspection Report (VIR) for commercial purpose vehicles.
  9. Import Declaration Form (IDF).
  10. Comprehensive Valued Inventory (3 copies, detailed per box/boxes numbered, signed by owner).
  11. Comprehensive Packing List.
  12. Authority to import vehicle (letter nominating a licensed customs clearing agent to act on your behalf).

Car importation process

The process of importing a secondhand vehicle in Kenya is very simple.

  1. Identify the car you want to buy from a reputable seller.
  2. Pay for the car and shipment costs, and the vehicle will be dispatched.
  3. Once the arrives at the port, you will be required to clear the vehicle through Customs Services Department of the Kenya Revenue Authority (KRA) before it’s released to you. It’s advisable to use the services of a licensed clearing and forwarding agent with authorized access to the KRA Customs System. The clearing agent will facilitate the process of preparing the necessary Customs documents.
    • When engaging with your preferred clearing agent ensure you provide all the importation documents listed above.
    • The clearing agent in Kenya will electronically document the vehicle to be imported in Kenya Customs offices.
    • Documenting process of importing a vehicle in Kenya takes place online on the Kenya Customs online system.
    • The clearing agent in Kenya clears the goods/vehicle to be imported on your behalf.
  4. Customs will then check the documents and release the vehicle for verification.
    • Verification will be done by the Customs and other interested regulatory bodies to determine the road worthiness of the vehicle imported.
    • The verification will determine the duties and tax payable.
  5. The clearing agent will be issued with a release order.
  6. After payment, you can now collect your vehicle.

Note: Hiring a clearing agent at the port of Mombasa will set you free from the hustle of contacting car registration offices in Kenya. The process is quite strenuous (especially for first timers), and delays caused by registration may mean the difference between your car hitting the maximum allowed age of 8 at the port’s parking space, or having it cleared fast.

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Victor Mochere

Victor Mochere

Victor Mochere is a blogger, social media influencer, and netpreneur creating and marketing digital content.

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