Tax Charged When Importing Second Hand Car to Kenya

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Importation of second hand cars attract tax, which charged at the rates discussed below

Duties and Taxes payable
Import duty at 25%, Excise duty at 20% and VAT at 16% are payable cumulatively and in that order. i.e,

    • Import duty is 25% of the Customs value (CIF) of the vehicle i.e. 25% of (Invoice value + Insurance + Freight charges)
    • Excise duty is 20% of (Customs Value + Import Duty)
    • VAT is 16% of (Customs Value + Import Duty + Excise Duty)

 

Further, an Import Declaration Fee (IDF) of 2.25% of the CIF is also charged subject to a minimum of Ksh. 5,000 payable in advance on application.

Clearance through Customs

To clear the vehicle through Kenya Customs, an importer will have to contract a licensed clearing agent to process their declaration in the Simba 2005 system. A listing of licensed clearing agents is available online here.

The clearing agent will lodge an import entry in Simba 2005 system, pay the required duties and taxes and present all the relevant documentation for Customs to pass the entry.
The documents required are:

  • Original Commercial Invoice.
  • Original Bill of Lading.
  • Import Declaration Form obtained from Customs.
  • Authentic Original Logbook from country of origin.

KRA shall not accept a Certificate of Export issued by Dubai Police or any other authority as a substitute for a foreign log book.
If the logbook is in a foreign language, an English translation issued by the respective Embassy, High Commission or a consulate based here in Kenya, must be furnished to Customs to authenticate the foreign logbook.

  • Cancellation of the foreign Logbook
  • Certificate of Inspection by Japan Auto Appraisal Institute (JAAI)
  • Any other document that may be required by Customs

Note: The vehicle must meet Kenya Bureau of Standards KS 1515:2000 – Code of Practice for Inspection of Road Vehicles.

The Standard spells out three major criteria for acceptance of vehicles of importation:

  1. Age Limit
    All road vehicles, which are more than eight years old from the year of manufacture, shall not be allowed for importation. Currently we are accepting cars manufactured in 2002 and after.
  2. Left Hand Drive
    All left hand drive vehicles are not allowed for registration unless they are for special purpose i.e. Ambulances, Fire Tenders and large construction vehicles imported for projects and to be eventually donated to the Kenyan Government.
  3. Road Worthiness
    All used vehicles imported into Kenya shall be inspected for Road Worthiness, safety and other requirements.

All imports of used motor vehicles including those belonging to returning residents, diplomats and or public servants must meet the above requirements.

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