Importing a car from the UK can save you money and give you access to a wider selection of well-maintained vehicles. However, before purchasing your dream car, it's important to understand the taxes you'll pay when the vehicle arrives in Kenya.

Many first-time importers are surprised to discover that the final cost includes several government taxes and levies. Knowing how these charges work allows you to budget accurately and avoid unexpected expenses.

This guide explains the three main taxes charged by the Kenya Revenue Authority (KRA)—Import Duty, Excise Duty and Value Added Tax (VAT)—as well as other import-related costs you should factor into your budget.

Why Does KRA Charge Import Taxes?

Import taxes are collected on vehicles entering Kenya to generate government revenue, regulate imports, and support economic policy. Every imported vehicle must be assessed before it can be cleared through customs.

These taxes are calculated according to customs legislation and are based on the vehicle's customs value rather than simply the amount you paid for it.

Understanding CIF (Cost, Insurance and Freight)

Before any taxes are calculated, KRA establishes the vehicle's Customs Value, commonly referred to as the CIF Value.

CIF includes:

Cost of the vehicle
Marine insurance
Shipping (freight) costs

For used vehicles, KRA determines the customs value using the Current Retail Selling Price (CRSP) schedule together with the applicable valuation methodology. This customs value forms the basis for calculating import taxes.

Import Duty

Import Duty is the first tax applied when importing a vehicle.

Traditionally, Import Duty has been calculated as 35% of the vehicle's customs value (CIF), although applicable rates can change depending on government policy and the relevant customs tariff. Always confirm the current rates before purchasing a vehicle.

Example

If your CIF Value is KES 1,000,000:

Import Duty = 35%

Import Duty = KES 350,000

Excise Duty

After Import Duty is calculated, Excise Duty is applied.

Excise Duty is calculated on:

CIF + Import Duty

The applicable excise rate may vary depending on factors such as engine capacity and current tax regulations. Historically, passenger vehicles with larger engines have attracted higher excise rates than smaller-engine vehicles. Ranges from 20-35%. Electric vehicles are currently at 10%. Always check the official KRA website for changes on this.

Continuing our example:

CIF = KES 1,000,000

Import Duty = KES 350,000

Taxable Value = KES 1,350,000

If Excise Duty is 35%:

Excise Duty = KES 472,500

Value Added Tax (VAT)

VAT is calculated after Import Duty and Excise Duty have been added.

The current VAT rate is 16%.

VAT is applied to:

CIF + Import Duty + Excise Duty

Example:

CIF = KES 1,000,000

Import Duty = KES 350,000

Excise Duty = KES 472,500

Taxable Value = KES 1,822,500

VAT = 16%

VAT Payable = KES 291,600

Other Charges to Consider

Besides the three major taxes, importers should also budget for additional statutory charges and import-related costs.

These may include:

Import Declaration Fee (IDF)
Railway Development Levy (RDL)
Port handling charges
Customs clearance fees
Vehicle registration costs
Inspection and compliance fees
Shipping line costs

The applicable IDF and RDL percentages are prescribed by law and are calculated on the customs value of the vehicle.

Sample Tax Breakdown

Using our simplified example:

Charge	Amount
CIF Value	KES 1,000,000
Import Duty	KES 350,000
Excise Duty	KES 472,500
VAT	KES 291,600
Subtotal (before other charges)	KES 2,114,100

This example excludes IDF, RDL, clearing fees, registration costs, and shipping-related expenses, which should also be included when calculating your final landed cost.

How to Estimate Your Total Import Costs

Before buying any vehicle, it's advisable to:

Confirm the vehicle's customs valuation.
Obtain an accurate shipping quotation.
Factor in all applicable taxes and levies.
Include clearing, registration, inspection, and delivery costs.
Request a complete landed-cost estimate before making payment.

Planning helps you avoid unexpected expenses once the vehicle arrives in Kenya. KRA CRSP Download

Import with Confidence Through UK RoadRunner

At UK RoadRunner, we help customers simplify the vehicle import process from start to finish.

Our team assists with:

Sourcing quality vehicles from the UK
Independent vehicle inspections
Secure international shipping
Documentation support
Import cost estimates
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Whether you're importing your first family car or adding to your fleet, we'll help you understand the full cost before you commit.

Frequently Asked Questions

How does KRA calculate import taxes?

KRA calculates taxes using the vehicle's customs value (CIF). Import Duty is calculated first, followed by Excise Duty, then VAT. Additional statutory levies such as IDF and RDL may also apply.

Does engine size affect import taxes?

Yes. The applicable excise duty rate may vary depending on the vehicle's engine capacity and prevailing tax regulations.

Can I estimate taxes before buying a vehicle?

Yes. A professional importer can provide a landed-cost estimate before purchase, helping you understand the total cost of importing your chosen vehicle.

Why is the final import cost sometimes higher than expected?

Many buyers focus only on the purchase price and shipping costs. However, import taxes, statutory levies, customs clearance, registration, and related charges all contribute to the final landed cost.

Get a Free Import Quote

Thinking about importing a vehicle from the UK?

Contact UK RoadRunner today for a personalised quotation. We'll help you estimate your total import costs, explain the applicable taxes, and guide you through every stage of the import process, making your journey to vehicle ownership simple, transparent, and stress-free.

KRA Car Import Taxes Explained: Duty, Excise Duty and VAT