What is the Cost to Import a Car to Kenya?

What is the Cost to Import a Car to Kenya?

Importing a car to Kenya involves a series of steps and costs that are regulated by the Kenya Bureau of Standards and the Kenya Revenue Authority. This guide will walk you through the process, including the costs involved, to ensure a smoother and more informed importation process.

Import Regulations and Standards

Vehicles imported into Kenya must pass the Kenya Bureau of Standards (KEBS) code of practice for the inspection of road vehicles. This code ensures that the vehicle meets the required safety and environmental standards, which are crucial for protecting road safety and reducing pollution.

Duty Cost to Import a Used Car from Japan to Kenya in 2020

The duty costs to import a used car from Japan to Kenya in 2020 are determined by several factors, primarily the current retail selling price (CRSP) of the vehicle upon arrival from manufacturing. Here’s a detailed breakdown:

Factors Influencing Import Duty

1. Month/Year of Manufacture/Registration: The year the vehicle was manufactured or registered can affect the duty costs.
2. Vehicle Make: Examples include Mitsubishi, Mercedes, BMW, Toyota, Land Rover, Subaru, Nissan, etc.
3. Vehicle Model: Different models within each make will also impact the duty costs.

Typical Vehicle Models and Costs

Here are some typical vehicle models and their corresponding import duty: Allion Premio Advan Bluebird Defender 110 Mercedes (various models) BMW (various models) Toyota Land Rover Subaru Nissan

Import Duty Calculation

The import duty is calculated based on the Customs Value CIF (Cost, Insurance, and Freight) of the vehicle. The formula is as follows:

Import duty 25% of (Invoice value Insurance Freight charges)

Excise Duty

The excise duty is calculated as follows:

Excise duty 20% of (Customs Value Import Duty)

VAT

The value-added tax (VAT) is also applicable, and is calculated as:

VAT 16% of (Customs Value Import Duty Excise Duty)

IDF (Import Declaration Fee)

IDF is flat and is payable according to the following:

IDF 2.25% of CIF value or Ksh 5000 (whichever is higher)

Age Limit for Importation

The age limit for importing a used car from Japan to Kenya in 2020 is crucial and is determined based on the engine capacity of the vehicle. Here are the guidelines:

Age Limit Criteria

1. If the vehicle is under 1500cc: The vehicle needs to be less than 8 years old from the date of production.
2. If the vehicle is over 1500cc: The vehicle needs to be less than 5 years old from the date of production.

Conclusion

Importing a car to Kenya is a detailed process involving meeting standards and paying various taxes. Understanding the factors that influence import costs and the specific age limits can significantly simplify the process. Always ensure compliance with the Kenya Bureau of Standards and the Kenya Revenue Authority to avoid any regulatory issues.