The True Cost of Clearing a Car in Kenya

The Car Has to Qualify First

Not every car can enter Kenya. Only vehicles first registered in 2019 or later may be imported in 2026, and this rolling limit tightens by one year every January 1st. Miss that window and you lose your shipping fees with nothing to show for it

Vehicles must also be right-hand drive, unless they fall under specific exceptions like ambulances or fire tenders. They need to meet KEBS KS 1515:2000 roadworthiness standards, and a mandatory pre-shipment inspection by a KEBS-approved agent in the export country is required, costing between $150 and $250.

How KRA Calculates What You Owe

This is where most people get caught off guard. KRA doesn't just look at what you paid for the car.

KRA compares the CRSP (Current Retail Selling Price) value and the actual invoice value of the car, then uses whichever is higher. The customs value is then calculated by applying depreciation to that figure. In other words, if KRA's database says your car is worth more than you paid, you're taxed on their number.

From that customs value, five taxes are stacked on top of each other:

Import Duty: The import duty rate has risen from 25% to 35% under the July 2025 CRSP update.
Excise Duty: This varies by engine size and fuel type. Bigger engines cost more.
VAT: 16% levied on the customs value plus excise duty.
IDF (Import Declaration Fee): 2.5% of the customs value, with a statutory minimum of KES 5,000.
RDL (Railway Development Levy): 2% of the customs value, collected to fund Kenya's railway and road networks.

These are applied sequentially, not independently. Each one compounds on the last.

What Changed in July 2025

This is significant. From 1 July 2025, KRA implemented a major overhaul to the CRSP system. The number of vehicles listed in the CRSP database grew from approximately 3,000 models in 2019 to over 5,200 models. The exchange rate used to calculate duty also shifted from KES 100 to KES 130 per USD, aligning with current market rates.

The direction of travel is toward invoice-based taxation. Under a new system taking effect in July 2025, import duties are calculated based on the vehicle's actual invoice price. Importers are required to present legitimate purchase invoices along with supporting documents such as payment receipts and shipping records. The stated goal is greater transparency, but the update cuts both ways. While some vehicles will attract higher duties under the new system, others, particularly select luxury models, may benefit from reduced CRSP values. Whether you come out ahead depends entirely on the specific car you're bringing in.

The Port Bill People Forget

KRA duties are not the only cost at Mombasa. On top of KRA duties and taxes, you will pay approximately KSh 160,800 covering port charges, transport, verification fees, clearance, radiation checks, NTSA fees, and clearing agent fees. These are fixed costs regardless of which car you bring in.

Is It Worth It?

For cars priced below KSh 2 million, buying locally makes more sense. The price difference after duties rarely justifies the process. Where importing earns its place is in the higher-end segment: SUVs, pickups, luxury, performance, and well-specced family cars where the landed cost can still beat the local market by a meaningful margin, and the buyer gets significantly more for their money.

The condition of what you receive, though, comes down to who you're working with. Some importers chase the lowest price and the quality reflects that. The better approach is sourcing units that are both competitively priced and high grade, cars that will actually serve you well over time and not just look like a deal on paper.