Tax on imported cars in Kenya/WILLIAM WANYOIKE

Imported cars in Kenya attract a combination of taxes and levies that significantly raise their final cost.

The tax structure includes an import duty of 35 per cent, which is charged on the customs value of the vehicle.

In addition, buyers pay excise duty ranging between 20 and 35 per cent, depending on engine size and vehicle specifications.

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Value Added Tax (VAT) is applied at 16 per cent, further increasing the overall price.

Importers are also required to pay an Import Declaration Fee (IDF) of 3.5 per cent and a Railway Development Levy (RDL) of 2 per cent.

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When combined, these charges can push the total tax burden to between 70 and 100 per cent of the car’s value, effectively doubling the purchase cost in some cases.

The high taxation has made vehicle ownership more expensive and has been linked to a slowdown in car imports, as buyers weigh affordability against rising costs in the market.