Understanding Car Import Duty & Taxes in Kenya (2025)

Importing a car into Kenya involves several layers of tax. Many buyers are surprised by the final bill at the port. This guide explains every charge so you can budget accurately.

What is Customs Value?

All taxes are calculated on the Customs Value, not necessarily what you paid for the car. KRA uses the higher of: the transaction value (invoice price + shipping + insurance) or the current market value from their internal database.

Import Duty — 25%

The base tax. Applied at 25% on the Customs Value. This is the largest single charge for most vehicles.

Excise Duty

Charged at 20% for vehicles with an engine above 1500cc, and 10% below 1500cc. It is calculated on the Customs Value plus Import Duty combined. This makes it a tax on a tax.

VAT — 16%

VAT is applied on top of Customs Value + Import Duty + Excise Duty. It compounds on the taxes above.

IDF Levy — 3.5%

Import Declaration Fee, charged at 3.5% of Customs Value. Paid when filing the import declaration.

Worked Example

A 2020 Toyota RAV4 2.0L (Customs Value = KSh 2,000,000): Import Duty = KSh 500,000. Excise Duty (20%) on KSh 2.5M = KSh 500,000. VAT (16%) on KSh 3,000,000 = KSh 480,000. IDF = KSh 70,000. Total taxes = approximately KSh 1,550,000. Total cost = ~KSh 3,550,000.

Plan Your Budget with Hive Motors

At Hive Motors, we give you a full cost breakdown before you commit to a purchase — so there are no surprises at the port. WhatsApp us for a personalised import quote.