HOW TO COMPUTE DUTIES FOR IMPORTING CARS IN KENYA (Customs)

First things first and prior to showing how to do the above, note that this does not apply to (Lorries, Pickups, Motorcycles, Prime-movers, Trailers, Buses, and Bulldozers). These others will be handled later.

Firstly, obtain the C.R.S.P(Current Retail Selling Price), which the the current market price in Kenya for such a given model's brand new car. That you can get from the KRA website kra.go.ke on the section of Downloads>Customs Downloads> latest CRSP.

Secondly, you have to determine DEPRECIATION, which is based on the date of first registration as per the foreign logbook or Inspection Certificate e.g. JEVIC

Depreciation rates are as follows:

•  0-6 Months       5%
• Over 6 Months  10%
• 1-2 years           15%
• 2-3 years           20%
• 3-4 years           30%
• 4-5 years           40%
• 5-6 years           50%
• 6-7 years           60%
• 7-8 years           70%

Taking CRSP to be x and DEPRECIATION to be D, 

Then;  

        To determine the CUSTOMS VALUE (on which to determine DUTY)

       

        Customs Value = [(x/1.25)*(100%-D)/ 1.25/1.2/1.16]

DUTIES COMPUTATION

1. Import Duty

Import Duty = Customs Value*25%

Excise Value = Customs Value + Import Duty

2. Excise Duty

Excise Duty = Excise Value*20%

VAT Value= Excise Value + Excise Duty

3. VAT @ 16%

VAT at 16% = VAT Value*16%

Total Taxes = Import Duty (1) + Excise Duty (2) + VAT (3)

4. I.D.F Fees

I.D.F Fees = 2.25%*Customs Value

GRAND TOTAL DUTIES = Import Duty (1) + Excise Duty (2) + VAT (3) + I.D.F (4)

For any questions e-mail tax.xplained@gmail.com

• There is also this link I would recommend which goes further to show all other costs involved besides duty plus the software for computation http://www.ushurucalc.com/

Source

http://www.kra.go.ke/index.php/downloads/customs-downloads/customs-downloads