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The Current Cost Of Clearing Cars In Kenya Officially (Updated Guide, 2025)

Importing a vehicle into Kenya involves navigating a complex framework of regulations, taxes, and procedures designed to control the quality of vehicles on Kenyan roads and to generate revenue for the government. As of 2025, understanding the official costs associated with clearing cars through Kenyan customs is crucial for importers to make informed decisions and ensure compliance with national laws.

1. Regulatory Requirements for Vehicle Importation

Before delving into the financial aspects, it's essential to comprehend the regulatory prerequisites for importing vehicles into Kenya:

• Age Limit: Imported vehicles must be less than eight years old from the year of first registration. For instance, in 2025, only vehicles manufactured in 2017 or later are permissible. 
• Right-Hand Drive: All vehicles must be right-hand drive, aligning with Kenya's traffic regulations.
• Roadworthiness Inspection: Vehicles are subject to a roadworthiness inspection by a Kenya Bureau of Standards (KEBS) appointed agent in the country of export to ensure they meet Kenyan standards.

2. Taxation and Duties

The cost of clearing a vehicle in Kenya is significantly influenced by various taxes and duties levied by the Kenya Revenue Authority (KRA). The primary charges include:

• Import Duty: This is calculated at 25% of the Customs Value (CIF), where CIF is the sum of the vehicle's invoice value, insurance, and freight charges. 
• Excise Duty: The excise duty rate varies based on the engine capacity:
  • 20% of the Customs Value plus Import Duty for vehicles with engine capacities of 1,500 cc and below.
  • 25% for vehicles above 1,500 cc.
• Value Added Tax (VAT): Levied at 16% on the aggregate of the Customs Value, Import Duty, and Excise Duty.
• Import Declaration Fee (IDF): Charged at 3.5% of the Customs Value.
• Railway Development Levy (RDL): Applied at 2% of the Customs Value.

3. Additional Costs

Beyond the primary taxes and duties, importers should anticipate additional expenses during the clearance process:

• Port Charges and Standard Gauge Railway (SGR) Fees: Approximately Ksh 120,000.
• Verification Fee: Around Ksh 15,000.
• Interpol Clearance: Approximately Ksh 15,000.
• Motor Vehicle Security Surveillance (MSS) Levy: About Ksh 2,000.
• Radiation Inspection: Approximately Ksh 1,000.
• National Transport and Safety Authority (NTSA) Sticker: Around Ksh 800.
• Local Transport: Approximately Ksh 25,000.
• Clearing Agent Fees: Typically around Ksh 100,000.

These figures can vary based on the service providers and specific circumstances of the importation process. 

4. Calculation Example

To illustrate the cumulative cost, consider importing a vehicle with a CIF value of Ksh 1,000,000 and an engine capacity of 1,600 cc:

• Import Duty: 25% of CIF = 0.25 * 1,000,000 = Ksh 250,000.
• Excise Duty: 25% of (CIF + Import Duty) = 0.25 * (1,000,000 + 250,000) = Ksh 312,500.
• VAT: 16% of (CIF + Import Duty + Excise Duty) = 0.16 * (1,000,000 + 250,000 + 312,500) = Ksh 260,000.
• IDF Fee: 3.5% of CIF = 0.035 * 1,000,000 = Ksh 35,000.
• RDL Fee: 2% of CIF = 0.02 * 1,000,000 = Ksh 20,000.
• Total Taxes and Duties: Ksh 250,000 (Import Duty) + Ksh 312,500 (Excise Duty) + Ksh 260,000 (VAT) + Ksh 35,000 (IDF) + Ksh 20,000 (RDL) = Ksh 877,500.
• Additional Costs: Approximately Ksh 160,800.
• Grand Total: Ksh 877,500 + Ksh 160,800 = Ksh 1,038,300.

Therefore, the total cost to clear the vehicle would be approximately Ksh 1,038,300, excluding the initial CIF value.

5. Recent Developments

In a bid to streamline the taxation process, the KRA has announced plans to transition from the Current Retail Selling Price (CRSP) method to a system based on the actual transaction value of vehicles at the point of shipment. This change aims to reflect the true market value of imported vehicles and could impact the calculation of duties and taxes. 

6. Recommendations for Importers

To navigate the vehicle importation process in Kenya effectively, consider the following steps:

• Engage Licensed Clearing Agents: Utilize the services of licensed customs clearing agents to handle documentation and ensure compliance with Kenya Revenue Authority (KRA) regulations.
• Stay Informed: Regularly consult the KRA website and official communications for updates on importation procedures and tax rates.
• Budget for Additional Costs: Anticipate ancillary expenses such as port charges, verification fees, and local transportation to avoid unexpected financial burdens.
• Verify Vehicle Compliance: Ensure the vehicle meets all regulatory requirements, including age limits and right-hand drive specifications, to prevent importation issues.
• Plan for Inspection: Arrange for the mandatory roadworthiness inspection by a Kenya Bureau of Standards (KEBS) appointed agent in the country of export to avoid delays upon arrival.

Conclusion

Importing a vehicle into Kenya in 2025 requires careful adherence to established regulations and a thorough understanding of the associated costs. By staying informed about the latest policies, accurately calculating taxes and duties, and engaging professional assistance when necessary, importers can navigate the process efficiently and minimize potential challenges.