How much does it cost to import a car into Kenya? Eight mandatory payments you'll make

Many first-time importers are surprised when the total cost of importing a car turns out to be much higher than the purchase price.

That's because Kenya's import costs go beyond buying the vehicle.

Once your car arrives at the Port of Mombasa, several statutory taxes and charges come into play before you can drive it home.

Here's a breakdown of the major costs.

1. The cost of buying the car

Everything starts with the vehicle's purchase price.

Whether you're buying from Japan, the UK or another country, the amount you pay the seller forms part of the vehicle's customs value, which KRA uses when calculating taxes.

2. Shipping and marine insurance

You'll also pay to have the vehicle shipped to Kenya.

Shipping costs vary depending on:

• The country of origin.

• The size of the vehicle.

• The shipping method used.

• Marine insurance is also required to protect the vehicle while it's in transit.

Together, the purchase price, shipping and insurance make up what is commonly known as the CIF Value (Cost, Insurance and Freight).

3. Import Duty

Import Duty is one of the biggest charges you'll pay.

It is currently charged at 25% of the Customs Value of the vehicle.

This tax applies to most imported used vehicles entering Kenya.

4. Excise Duty

Excise Duty is calculated based on the type of vehicle and its engine capacity.

Larger engine vehicles generally attract higher excise duty than smaller, more fuel-efficient models.

5. Value Added Tax (VAT)

VAT is charged at 16%.

Unlike many buyers assume, VAT is not calculated using only the vehicle's purchase price. It is applied after other import taxes have already been factored into the customs value.

6. Import Declaration Fee (IDF)

Importers are also required to pay an Import Declaration Fee (IDF), which is currently charged at 2.5% of the customs value, subject to the applicable minimum amount.

7. Railway Development Levy (RDL)

Another statutory charge is the Railway Development Levy (RDL).

It is currently charged at 2% of the customs value and helps finance railway infrastructure.

8. Port and clearing charges

Once the vehicle arrives at the Port of Mombasa, additional charges may apply, including:

• Port handling fees.

• Storage charges (if the vehicle isn't cleared on time).

• Clearing agent fees.

• Documentation costs.

These charges vary depending on how quickly the vehicle is processed.

9. NTSA registration fees

Before the vehicle can be driven on Kenyan roads, it must be registered with the National Transport and Safety Authority (NTSA).

You'll pay registration-related charges before receiving:

• A Kenyan registration number.

• Number plates.

• A digital logbook.

Can you estimate the total cost before buying?

Yes.

Most importers use online duty calculators or request quotations from licensed importers before purchasing a vehicle.

This allows buyers to estimate the landed cost - the total amount they'll spend from purchase to registration - before committing to a deal.

In a nutshell ....

Importing a car can still be a cost-effective option, but only if you understand the full financial picture.

Looking beyond the purchase price and budgeting for taxes, shipping and registration costs can help you avoid unexpected expenses and make a more informed buying decision.

Coming next: Documents You Need to Import and Register a Car in Kenya: A Complete Checklist.