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How to Calculate Import Duty for Cars in Kenya

How to Calculate Import Duty for Cars in Kenya

The calculation of import duty has for a long time seemed like rocket science to people importing cars from abroad. Sometimes the cost of import duty is too high that car owners get stranded, leaving their vehicles at the port for months. For a rough idea of the amount of money you need to pay as import duty, here are some considerations;

  1. Customs Duty – this differs from one vehicle to another but the factors that determine the amount are; make, model, class, year, month, engine capacity, transmission, and fuel type. All this data is important in calculating customs duty because each one contributes to the overall Current Retail Selling Price (CRSP) of a car if it were to be bought from a showroom. Simply, CRSP is the price of the brand new version of the car you are importing.
  2. Vehicle Duty – to calculate duty, customs officials will consider the CRSP, deduct marginal profit, depreciate it as per year of manufacture and also deduct taxes slapped on the price. Eg, 25% is Import Duty, 20% + Import Duty is Excise Duty, 16% + Import Duty + Excise Duty is charged as VAT and 2.25% is IDF Fee.
  3. Container Freight (CFS)/port charges – this depends on the amount of physical space that is occupied by the carload at the port. Vans like Toyota Hiace pay Kshs. 26,000 to Kshs. 30,000, 4WD pay Ksh. 30,000 to Kshs. 34,000 while small saloon cars pay Kshs. 18,000 to Kshs. 22,000.
  4. Shipping/ delivery processing – this will normally amount to an estimated  Ksh. 12,000
  5. Clearing and forwarding fees – this is a negotiable fee and can range between Ksh. 15,000  to 30,000

Other charges that you need to budget for are;

  • Insurance
  • Delivery to your doorstep
  • Minor car service

While some car importation dealers will handle all these payments for you, you may be required to hire an agent to run around making the various payments to respective recipients.

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