How is car import duty calculated in Kenya? (worked example)
Last updated · Cada car guides
KRA does not tax the price you paid. It starts from the car's Current Retail Selling Price (CRSP) in its July 2025 schedule, divides by 1.25, deducts depreciation for age (20% at 1–2 years up to 65% at 7–8 years), and divides out duty, excise and VAT to get a customs value. It then charges 35% import duty on that value, excise (20% up to 1500cc, 25% for most larger engines, 35% for petrol over 3000cc or diesel over 2500cc) on value plus duty, 16% VAT on value plus duty plus excise, a 2.5% import declaration fee and a 2% railway development levy.
| Import duty | 35% of customs value (25% for fully electric) |
|---|---|
| Excise duty | 20% ≤1500cc; 25% above; 35% petrol >3000cc or diesel >2500cc; 10% electric |
| VAT | 16% of customs value + duty + excise |
| IDF | 2.5% of customs value |
| RDL | 2% of customs value |
| Depreciation | 20% (>1–2 yrs), 30%, 40%, 50%, 55%, 60%, 65% (>7–8 yrs) |
Worked example: a 2021 Toyota Axio imported in 2026
| Step | KES |
|---|---|
| KRA CRSP (COROLLA AXIO, 1496cc) | KES 3,236,062 |
| ÷ 1.25 (KRA's first step) | KES 2,588,850 |
| Less 50% depreciation (5 years old) | KES 1,294,425 |
| Customs value (÷ 1.35 ÷ 1.2 ÷ 1.16) | KES 688,817 |
| Import duty 35% | KES 241,086 |
| Excise duty 20% | KES 185,981 |
| VAT 16% | KES 178,541 |
| IDF 2.5% | KES 17,220 |
| RDL 2% | KES 13,776 |
| Total KRA taxes | KES 636,604 |
Taxes only: shipping, inspection, port, clearing and registration are extra. Estimate — final KRA assessment may differ.
The formula, in KRA's order
- Customs value = (CRSP ÷ 1.25) × (100% − depreciation) ÷ 1.35 ÷ (1 + excise rate) ÷ 1.16.
- Import duty = 35% × customs value.
- Excise duty = excise rate × (customs value + import duty).
- VAT = 16% × (customs value + import duty + excise duty).
- IDF = 2.5% × customs value; RDL = 2% × customs value.
- Total tax = the five lines added together.
What is not in the tax figure
Shipping, marine insurance, the pre-export inspection, port and shipping-line charges, the clearing agent's fee and NTSA registration are separate costs. Cada's import estimates add them so you see one landed figure.
KRA marks its template "guideline subject to verification". The assessment at the port decides the final figure, and KRA can apply extra depreciation case by case.
KRA's older importing guide still lists 25% import duty and an IDF of 3.5%, while its July 2025 valuation template applies 35% duty (Kenya's EAC stay of the 25% common tariff on vehicles) and the 2.5% IDF in force under the Miscellaneous Fees and Levies Act. Cada uses the template rates and shows every line so you can check them.
Common questions
Why is my duty higher than the car's price in Japan?
Because KRA works from the Kenyan retail value of the car new (CRSP), less depreciation, not from the auction price. For popular Japanese models that value is usually far above the auction price.
Is the duty lower for hybrids?
KRA has no separate hybrid tabulation. Hybrids pay the same import duty and VAT; excise follows engine size. Fully electric cars have their own lower rates (25% duty and 10% excise in KRA's template).
What if my car is not in the CRSP list?
KRA values it from the closest comparable model or its own assessment. Ask your clearing agent before you buy.
On Cada
Sources
General information, not legal, tax or financial advice. Rules and fees change; confirm with the authority named in the sources before you pay.