Understand KRA Taxes & Duties for Japanese Car Imports (2026)

If you’re planning to import a vehicle, understanding the cost of importing a car from Japan is critical. Most of this cost comes from KRA taxes and duties. Many buyers underestimate how much it is to import a car from Japan because they only look at the car’s purchase price. In reality, taxes can double your budget.

This guide breaks down how KRA calculates duties, what charges apply, and how to estimate your total cost accurately.

How KRA Calculates the Cost of Importing a Car from Japan

Kenya Revenue Authority (KRA) uses the Customs Value (CIF) to compute taxes.

CIF =
Car purchase price + Shipping cost + Insurance

Once CIF is determined, multiple taxes are applied sequentially.

Main KRA Taxes on Japanese Car Imports

1. Import Duty (25%)

This is charged on the CIF value.

Example:
CIF = KSh 1,200,000
Import duty = 25% → KSh 300,000

2. Excise Duty

Excise duty depends on engine capacity:

• Under 1500cc → 20%

• 1500cc – 3000cc → 25%

• Above 3000cc → 35%

This tax is charged on:
CIF + Import duty

Example:
CIF + duty = 1,500,000
Excise (25%) = 375,000

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3. VAT (16%)

VAT is applied to:

CIF + Import duty + Excise duty

Example:
Total = 1,875,000
VAT (16%) = 300,000

4. Import Declaration Fee (IDF – 3.5%)

Charged on CIF.

5. Railway Development Levy (RDL – 2%)

Also charged on CIF.

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Example: How Much Is It to Import a Car from Japan?

Let’s use a real example.

Car price: KSh 900,000
Shipping: KSh 150,000
Insurance: KSh 15,000

CIF = KSh 1,065,000

Taxes:

• Import duty (25%) → 266,250

• Excise duty (25%) → 332,812

• VAT (16%) → 265,218

• IDF (3.5%) → 37,275

• RDL (2%) → 21,300

Total KRA taxes = KSh 922,855

Final import cost:

KSh 1,987,855

This shows why buyers must understand the real cost of importing a car from Japan before purchasing.

Additional Charges That Affect Cost

Beyond KRA:

• Port handling fees

• Storage charges

• Clearing agent fees

• KEBS inspection

• NTSA registration

• Transport inland

How Engine Size Affects Import Cost

Bigger engines = higher excise duty.

Example:

Choose smaller engines to reduce taxes.

Age Rules That Affect Cost

Kenya allows cars 8 years or newer from year of manufacture.

Older cars:

• Not allowed

• Heavy penalties

• Clearance rejected

Always verify year before buying.

Common Mistakes That Increase Import Costs

• Under-declaring car value

• Wrong HS codes

• Skipping insurance

• Delayed clearance

• Using unlicensed agents

How Delta Cargo Connections Helps You Save Money

We:

• Pre-calculate KRA taxes

• Prevent overcharging

• Handle declarations

• Fast-track clearance

• NTSA registration

• Negotiate port releases

With us, you always know how much it is to import a car from Japan before you buy.

Related

• Beginner’s Guide to Importing a Car from Japan

• 7 Mistakes to Avoid When Importing Cars from Japan

• How Much Does It Cost to Import a Car from Japan to Kenya?

FAQs

How much tax do you pay to import a car from Japan?

Between 80% – 100% of CIF value.

Is VAT charged?

Yes, 16% VAT is mandatory.

Can I estimate taxes before buying?

Yes – Delta Cargo Connections does free calculations.

Final Thoughts

Understanding KRA taxes is the key to knowing the true cost of importing a car from Japan. Never rely on guesswork. Small errors can cost hundreds of thousands.

For accurate cost breakdowns and stress-free clearance, trust Delta Cargo Connections – Kenya’s car import experts.