Kenya is a major importer of Japanese Used vehicles.
In 2018 an astonishing 77,267 used vehicles were exported from Japan to Kenya, placing the country as the 6th bigger importer of used Japanese vehicles.
Right Hand Drive (RHD) Only allowed.
Older than 7 years old vehicles cannot be imported.
Import duties calculation:
How it works:
The Kenyan customs uses the higher of the CRSP (Current Retail Selling Price) or Invoice value to calculate taxes for the car. That means if Invoice value is higher than CRSP value, the invoice value shall be used to calculate the tax. This would make the value higher than the normal prescribed rates as per the CRSP.
Saving on Tax:
To save on tax:
Invoice value has to be lower than CRSP value.
The car has to be a “good month”
This means the month of registration has to be the same or earlier than the month of vessel arrival at the port.
The older the car the greater the tax savings. However one cannot import a car older than 7 years.
In special circumstances, One can import a car that was manufactured 8 years ago provided it is registered on the 7th year and the month of registration is the same as or later than the month of vessel arrival at the port. For e.g One can import a 2011 car provided it was registered in 2012 and the month of registration is not earlier than August, assuming the car shall arrive Mombasa port on August.
As of July 2019,
High tax rate on Diesel vehicles with engine of 2,500cc and over
High tax rate on Petrol vehicles with engine of 3,000cc and over.
If engine option available for utility vehicle, bigger engine is preferred choice.
4wd Probox with 1500cc sells only in the town of Meru in Kenya.
Important notes :
· It is highly recommended that vehicles be containerized to prevent pilferage at the port of Mombasa.
· The shipper should ensure that the VIN (called “chassis number” in Japan), the engine number, the year and month of first registration in Japan and the engine capacity/rating are indicated on at least the ocean bill of lading or invoice. This will speed up customs clearance and registration processes.
· Used vehicles imported from Japan must be inspected prior to shipping by a company called Quality Inspection Services Japan Co. Ltd (QISJ). A certificate of road worthiness is issued after inspection and is valid for 3 months from the inspection date.
Vehicles imported without the certificate or whose certificate is expired upon arrival in Mombasa are subjected to a penalty of 15% of the value of the vehicle or US$ 265 (whichever is higher) before they can be allowed in. It is an employee’s responsibility to pay the penalty.
· Port of discharge should be Mombasa.
