Car Import Regulations Kenya – Duty & Requirements

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Car Import Regulations Kenya

Kenya is a hub for the used Japanese cars and this demand is increasing day by day. It can be perfectly said that Kenyans look forward and rely a lot on Japan as a primary source for importing Japanese cars in Kenya.

The main reason for why most of the Kenyans look at the Japanese market is that this place offers a wide range of popular vehicles choices with high quality and reliability that too at the most affordable prices.

Now, the main question arises that how used Japanese cars should be to be imported in Kenya and what are the requirements that should be fulfilled. In this blog, we have everything covered for you. We at NEXT Insurance Kenya offers you complete information regarding your queries in just one collective article to assist our readers.

Importing Vehicles into Kenya – Common Terms Used

Current Retail Selling Price (CRSP): The amount you paid for your car does not matter. The Kenya Revenue Authority (KRA) publishes the current retail-selling price and clarification and forwarding agents use these prices when they compute or charge duties.

Custom Value: This is the value of an import as determined by customs department of the Kenya Revenue Authority. It is essential in determining the amount of duty that must be paid on an imported item.

Age of Registration: The year the car was manufacture it not necessarily the same year as the car registration data. The import duty is calculated using the registration age.

Engine Capacity: The larger the engine capacity, the higher the import duty.

Excise Duty: According to the Excise Duty Act of 2015 is levied at KSh150, 000 for a car less than 3 years old while Ksh200,000 for a car more than 3 years old.

Value Added Tax (VAT): The VAT is the amount the Kenya Revenue Authority (KRA) charges the 16% value added tax (VAT) to the buyer.

Import Declaration Fee (IDF): With Kenyan imports, the clearance agent is not the person responsible for obtaining the Import Declaration Fee license.

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Railways Development Levy: This levy was introduced to help the government finance the rail network’s upgrade. It has been set at 1.5% of imported goods, meant to fund for the construction of a new railway line from the Port of Mombasa to Uganda.

Maritime Surcharge Levy (MSS Levy): The tax charged to all shippers when items are imported.

Clearing & Freight Forwarding Cost: This takes care of the imports logistics by the Freight Forwarding Company including dealing with the carriers, legalities and insurance.

Delivery Order Fee: This is the fee paid for the release of goods by the shipping company. The custodian of the cargo must verify the delivery order and proof of completion of the customs clearance procedures.

Only then will the cargo be released to the importer. The Delivery Order Fee is the cost of verifying the delivery order and having your automobile released.

How much old Japanese cars can be imported into Kenya?

Second-hand cars are attractive to Kenyans population because of their affordability. This should be kept in mind that age restrictions for the used vehicles shall not be more than eight years from the year of first registration.

The difference between the manufacturing date and the registration date should definitely be not more than a year.

The main aim is to offer safety and reduce the risk associated with substandard vehicles entering the Kenyan market. These Japanese imported vehicles must pass safety and mechanical inspection and also be right-hand driven.

How do you import a car in Kenya?

To import a car to Kenya, you will need a proper documenting process that takes place online on the Kenya Customs online system called Simba 2005 system. The clearing agent in Kenya clears the goods/vehicle to be imported on your behalf.

There are basically two methods to import cars in Kenya that are listed below::

  • Stock Method
  • Auction Method
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Let’s know the steps for both these methods so that with the assistance of NEXT Insurance Kenya you are able to import cars in Kenya:

STOCK METHOD: To Import Car In Kenya

Get to know the below listed steps

  • The first step is to find a reliable supplier
  • You should select the car.
  • Don’t forget to send a particular inquiry to the supplier.
  • Try to negotiate with the supplier.
  • You should be able to send the request for Performa statement.
  • Now you can place the order for delivery.
  • Last but definitely not the least is to transfer the full amount to the supplier’s account.

AUCTION METHOD:  To Import Car In Kenya

Get to know the below listed steps

  • Create a membership account for to register yourselves.
  • After the completion of membership form, you will be able to log in and bid for your favorite car.
  • After the successful bidding, you need to deposit the entire bidding
  • As you have deposited the amount, you can carefully choose your preference car
  • You can now translate the car inspection cost
  • Quote the winning bid price now
  • If you are able to succeed in the bidding, an invoice is sent to you with the entire costs including the insurance as well
  • After receiving the invoice you need to transfer the full payment.
  • And during the entire process, you will be definitely updated time to time on the progress via emails.

Importing a car in Kenya – Regulations

  • THE AGE LIMIT OF THE USED CARS: In 2018 only vehicles manufactured in the year 2011 and onwards will be allowed to be imported into Kenya.
  • LEFT HAND DRIVE VEHICLES: All the left hand drive vehicles are not allowed for registration unless they have a special purpose.
  • PRIOR INSPECTION FOR ROAD WORTHINESS: All the motor vehicles imported into Kenya must be inspected prior to shipment by QISJ for road worthiness.
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There are several documents listed below that are needed to import a vehicle to KENYA. These includes:

Car Import Kenya Requirements:

  • Vehicles with less than 8 years of manufacture can be imported into Kenya.
  • Vehicles have to be Right Hand Drive. Both RO/RO & Container shipping services accepted.
  • The inspection of vehicles need to be done by Japan Export Vehicle Inspection Center (JEVIC).
  • The Insurance is needed.

Original documents that are needed for clearing a vehicle at the port includes:

  • Certificate of Permanent Export or Vehicle Registration Document.
  • Bill of Lading.
  • CIF Invoice.
  • Import Declaration Form obtained from Customs.
  • Authentic Original Logbook from country of origin.

How much is car import duty in Kenya?

While importing a vehicle to Kenya is 25% of the customs value of vehicle. Excise Duty payable while importing a vehicle into Kenya is 20% of the CIF value of the vehicle in Kenya plus the Import Duty calculated (CIF value + Import Duty). The VAT payable during importation is 16% of the (CIF value + Import Duty + Excise Duty). And as stated, the IDF (Import Declaration Fee) payable in Kenya is 2.25% of the CIF value or Ksh. 5,000, whichever is higher.

There are several domestic and exporter car dealers located in Japan. These car dealers are mostly based in Osaka, Chiba, Kobe, Aichi Yokohama, Tokyo, and Nagoya among other prominent cities in the region as well. The dealers buy used cars through auction and then the end user export them overseas. The customized car importer and exporter platform have been built because of these dealers. Most of the famous Japanese cars in Kenya include Nissan Note, Toyota Vitz, Toyota Harrier, and Mazda Demio.

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