Importing a car vs. buying locally in Kenya depends on your priorities. Here’s a quick breakdown:
- Cost: Importing often seems cheaper upfront but includes taxes (up to 145%), fees, and shipping costs that can add up. Local purchases may have higher sticker prices but save on logistics and taxes.
- Time: Importing takes 4–8 weeks for shipping and customs, while local purchases offer immediate ownership.
- Quality: Imported cars, especially from Japan, often have less wear but may not be suited to Kenyan roads. Local cars are tailored for the terrain and come with warranties.
- Convenience: Local dealerships handle compliance, offer financing, and provide after-sales support, unlike imports, which require navigating complex regulations and logistics.
Quick Comparison
| Factor | Importing | Buying Locally |
|---|---|---|
| Cost | Higher due to taxes/fees | Lower overall |
| Time | 4–8 weeks | Immediate |
| Quality | May not suit local roads | Tailored for Kenya |
| Convenience | Complex process | Simple, dealer-handled |
| Support | Limited warranty/service | Strong warranties/support |
If you need a car quickly, want local support, or aim to save on total costs, buying locally is often the better choice. Importing makes sense for specific models not available locally but comes with added complexity and expenses.
Benefits of Importing your car Compared to Sourcing it Locally/ Car Importation to Kenya from Japan
Importing Vehicles: Requirements and Process
Bringing a vehicle into Kenya involves navigating a maze of regulations, hefty taxes, and logistical challenges. Staying informed about the requirements can help you avoid costly delays or legal complications.
Government Rules and Legal Requirements
The Kenya Bureau of Standards (KEBS) sets the KS 1515:2000 standards, which determine whether a vehicle qualifies for importation into Kenya.
One major rule is age restrictions. By 2025, only vehicles manufactured in 2018 or later will be eligible for import.
Another critical requirement is the right-hand drive configuration. Left-hand drive vehicles are not allowed unless they fall under the special-purpose category, which must meet specific exemption criteria.
Additionally, you’ll need a Certificate of Roadworthiness issued by a KEBS-approved inspection agency in the exporting country. This certificate ensures the vehicle meets compliance and condition standards.
Most used cars imported into Kenya come from countries like the UK, Japan, South Africa, and Singapore, where KEBS has established inspection networks. If you’re importing from a country outside this list, confirm that KEBS-approved inspection services are available before making a purchase.
For special-purpose vehicles, such as those modified for unique functions, exemptions may apply. These vehicles must not exceed 20 years of age and must meet specific serviceability standards.
Import Costs and Tax Breakdown
The Kenya Revenue Authority (KRA) calculates import taxes based on the Current Retail Selling Price (CRSP), updated in July 2025. This updated system aims to ensure accurate valuations and improve revenue collection.
Here’s a breakdown of the taxes involved:
| Tax Component | Rate | Calculation Base |
|---|---|---|
| Import Duty | 35% (petrol/diesel), 25% (electric) | CRSP after depreciation |
| Excise Duty | 20% | CRSP + Import Duty |
| VAT | 16% | CRSP + Import Duty + Excise Duty |
| Import Declaration Fee | 2.25% | CRSP |
| Railway Development Levy | 2% | CRSP |
Depreciation plays a big role in determining your tax bill. Based on the vehicle’s age, depreciation rates range from 5% for cars under six months old to 65% for those between seven and eight years old.
Clearing and forwarding fees add about KSh 160,800, which covers port handling, verification, Interpol clearance, local transport, and agent services.
For example, a Toyota Auris with an 1800cc engine, manufactured in January 2017, and carrying a CRSP of KSh 2,355,704 and a CIF value of KSh 623,855.40, would face total duties of approximately KSh 541,194.56. These include:
- Import Duty: KSh 155,963.85
- Excise Duty: KSh 194,954.81
- VAT: KSh 155,963.85
- Import Declaration Fee: KSh 21,834.94
- Railway Levy: KSh 12,477.11
"The new CRSP is intended to strengthen revenue performance, improve compliance, and reduce valuation manipulation." – KRA
Once you’ve calculated the costs, the next step is ensuring all required documents are ready for a smooth shipping process.
Shipping Times and Documentation
Shipping times depend on the country of origin and the chosen route. Delays may occur at the port or during inspections, so having the right paperwork is crucial. Key documents include:
- The original commercial invoice showing the vehicle’s purchase price
- The original bill of lading as proof of shipment
- A completed import declaration form
- The original logbook from the country of origin (which will be canceled)
- The Certificate of Roadworthiness from a KEBS-approved agency
Licensed clearing agents can simplify these procedures. They handle KRA processes, lodge import entries, calculate and pay duties, and present all documents for customs clearance. Their services typically cost around KSh 100,000.
The valuation process has also changed with the introduction of the revised CRSP system. Now, tax calculations are based on the actual purchase price listed on your commercial invoice, rather than predetermined price lists. This makes it essential to ensure your invoice reflects the correct value.
Keep in mind that policies continue to evolve. Regularly check with KRA for updates on CRSP and other regulations to avoid unexpected delays.
Buying Locally: Market Options and Considerations
Kenya’s local car market provides a convenient alternative to importing, offering direct access to vehicles through dealerships and private sellers. This eliminates the hassle of dealing with international shipping and customs, making the process far simpler and more immediate.
Kenya’s Car Market: What’s Available
Kenya’s used car market is projected to grow from USD 1.25 billion in 2025 to USD 1.39 billion by 2030. This growth reflects the strong demand for second-hand vehicles in the country. Toyota leads the market with a commanding 50% share, ensuring a steady supply of parts and services through an extensive dealer network. Notably, around 80% of Kenya’s total vehicle fleet consists of second-hand cars, with many popular models priced between KSh 350,000 and KSh 500,000, making them a viable option for middle-income buyers.
Local dealerships simplify the buying process by offering vehicles that have already cleared customs and meet Kenyan regulations. These cars are typically well-suited for local conditions, including the climate, road infrastructure, and fuel quality. Buyers can choose between organized dealerships, which provide a structured purchase process and proper documentation, or private sellers, who may offer lower prices but require careful scrutiny.
This variety in the market lays the groundwork for comparing local pricing and payment options against the complexities of importing.
Local Pricing and Payment Options
While locally sold vehicles often come with dealer markups, they also save buyers from additional costs like shipping, port charges, and clearing agent fees. For example, a 2018 Toyota Harrier costs KSh 3,000,000 locally, compared to KSh 4,328,218.41 if imported – a difference of KSh 1,317,473. This price difference reflects the convenience and immediacy of purchasing locally.
Local dealerships also offer flexible financing options tailored to Kenyan income levels. These include hire purchase agreements, partnerships with banks, and in-house financing. Many dealers accept trade-ins, which can significantly reduce the upfront cost. Another major advantage is immediate ownership – there’s no waiting for the vehicle to arrive, unlike the lengthy process involved in importing.
Warranty and Service Support
Local purchases often come with strong after-sales support, including warranties recognized by Kenyan dealerships. In contrast, imported vehicles may lack local warranty coverage . These warranties typically cover parts replacement, labor, and sometimes extended service packages, offering peace of mind to buyers.
Additionally, local dealerships provide easy access to certified technicians, genuine parts, and comprehensive service options. Buyers can inspect vehicles thoroughly – test drives and mechanical checks are common practices, reducing the risk of hidden issues post-purchase.
Toyota’s dominance in the market ensures nationwide service support through an established dealer network. Dealerships also handle all necessary documentation and ensure compliance with local regulations, avoiding potential legal complications that can arise with imported cars.
These advantages, combined with rising import taxes, are prompting more Kenyan buyers to explore locally available vehicles.
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Direct Comparison: Import vs Local Purchase
Here’s a closer look at how importing vehicles stacks up against buying locally, focusing on key factors that influence your ownership experience.
Cost, Time, and Quality Comparison
Recent changes in taxes and exchange rates have made importing vehicles even more expensive. Import duties have climbed to 35% in 2025, alongside excise duties, which increased to 35% from 30% in 2019. On top of that, the exchange rate has shifted from KSh 100 per US dollar in 2019 to about KSh 130 in 2025.
The tax structure for imports can feel overwhelming. It includes:
- Import duty: 35%
- Excise duty: 20% of the Current Retail Selling Price (CRSP) plus import duty
- VAT: 16% of the combined total
- Additional fees: 2.25% Import Declaration Fee
Here’s how importing compares to buying locally:
| Factor | Importing | Local Purchase |
|---|---|---|
| Total Cost | Base price + 35% import duty + 20% excise duty + 16% VAT + KSh 160,800 fees | Listed price (includes dealer markup) |
| Time to Own | 4–8 weeks for shipping and customs clearance | Immediate ownership |
| Selection | Access to over 5,200 unique models in KRA’s CRSP list | Limited to available local inventory |
| Quality Assurance | Requires KEBS verification | Pre-cleared and tailored for local needs |
| Legal Complexity | High (customs, documentation, compliance) | Low (handled by dealer) |
When it comes to time, local purchases are the clear winner. Importing a vehicle involves weeks of shipping and customs processing, while buying locally offers immediate access.
Quality considerations depend on the source. Japanese used cars often show less wear due to better road conditions in Japan. However, locally sold vehicles are designed for Kenyan conditions, featuring adaptations like high-tension coil springs for rough roads and potholes. On the other hand, some European imports may include features like heated windshields, which are less practical in Kenya.
These differences in cost and time set the stage for further contrasts in spare parts availability and service quality.
Parts and Service Accessibility
Japanese models dominate Kenya’s roads for a reason – they come with a reliable spare parts network and hold their resale value well. Japan supplies about 60% of Kenya’s imported vehicles, which reinforces the availability of parts.
UK-made cars, while often backed by authorized dealers in Kenya, present a different challenge. Luxury components frequently need to be imported separately, leading to higher costs and delays. Additionally, UK cars are generally 20–30% pricier than comparable Japanese models, and this premium extends to parts and maintenance.
For many Kenyan car owners, the used parts market remains essential. In 2018 alone, Kenyans spent $98.9 million on imported vehicle spares, most of which were secondhand. However, debates continue about the reliability of used parts versus new knock-offs.
"The secondhand products market in Africa has destroyed the existing local producers and discouraged innovation. What we need is collective government involvement: enforcing the law, while working on long-term solutions such as local manufacturing." – Gibson Mwakisha, Nairobi-based industrial designer
This highlights the importance of evaluating spare parts availability and service networks when deciding between importing and buying locally.
How Government Policies Affect Both Options
Government policies increasingly favor local purchases by imposing stricter import barriers. For example, the CRSP list has grown from about 3,000 models in 2019 to over 5,200 in 2025, allowing for more precise tax calculations – though these often result in higher duties.
Age limits on imported vehicles are also more strictly enforced, aiming to reduce the influx of older, high-maintenance cars. Back in 2014, the average imported vehicle was 15 years old, contributing to frequent breakdowns.
Environmental concerns are also influencing policy. Hybrid vehicles are gaining popularity, especially in Nairobi, as buyers look for ways to cut fuel costs and taxes.
"We’re seeing a shift in demand toward hybrids, especially among Nairobi buyers concerned about fuel costs and taxes"
The impact of these policies is evident in import statistics. In 2023, imported vehicle numbers dropped by 10.9%, falling to 78,127 units from 87,648 in 2022 – a sharp decline from the 2019 peak of 109,930 units.
Local dealerships are benefiting from these trends. They handle compliance, documentation, and warranties, reducing the legal burden for buyers. For those on a tight budget, it’s essential to look beyond the sticker price and consider total ownership costs, including maintenance and parts availability.
Decision Guide and Real Examples
Choosing between importing a vehicle and buying one locally depends on your personal circumstances and priorities. Factors like budget, timeline, and specific needs play a big role in making the right decision.
How to Choose Based on Your Needs
Start with your budget. While local car prices may seem higher at first glance, rising import duties often make local purchases more cost-effective in the long run. Additional costs tied to importing – like taxes and fees – can quickly add up, nullifying any initial price advantage.
Next, think about your timeline. If you need a car immediately, buying locally is the way to go. Importing typically involves weeks of waiting for shipping, customs clearance, and registration.
Consider maintenance costs as well. Owning a car in Kenya can cost up to KSh 200,000 annually, covering servicing, repairs, insurance, and security systems. Imported cars, however, may have higher upkeep costs due to difficulties in sourcing parts and potential compatibility issues.
Other key factors to weigh include:
- Vehicle specifications: Locally sourced vehicles are often tailored for Kenyan weather, roads, and driving conditions. Imported cars may not always meet these standards, with differences in suspension, sensors, and engine setups.
- Risk tolerance: Buying locally allows for physical inspections and test drives, while importing often relies on photos and grading systems without the chance to see the car in person. Local vehicles also usually come with warranties and after-sales support, unlike many imports.
Case Studies: When to Import vs Buy Local
Let’s break this down with real-world examples.
The Toyota Harrier Example highlights why local purchases can sometimes be more economical. A 2018 Toyota Harrier costs KSh 3,000,000 locally at Peach Cars, compared to approximately KSh 2,173,801 in Japan. But once you factor in all the additional costs, the story changes:
| Cost Category | Importing (KSh) | Buying Locally (KSh) |
|---|---|---|
| Initial Car Price | 2,173,801 | 3,000,000 |
| Shipping & Logistics | 100,000 | Included |
| Import Duty (25%) | 543,450 | Not Applicable |
| Excise Duty (25%) | 680,563 | Not Applicable |
| VAT (16%) | 543,650 | Included |
| Port & Clearing Fees | 248,559 | Not Applicable |
| Registration & Insurance | 27,500 | 10,745 |
| Estimated Total Cost | 4,328,218 | 3,010,745 |
In this case, the imported Harrier ends up costing over KSh 1.3 million more than the local option, making the local purchase about 30% cheaper despite its higher sticker price.
For budget-conscious buyers, local purchases often provide better value, especially in the used car segment. Kenya’s used car market is expected to grow from USD 1.72 billion in 2025 to USD 2.44 billion by 2034. Additionally, with Japan supplying 94.3% of the 62,495 used cars imported into Kenya in the 12 months leading up to June 2023, local dealers have access to a wide variety of vehicles from these sources.
For luxury car enthusiasts, importing might still be the only way to access specific models not available locally. However, this comes with higher costs, limited warranty options, and vehicles that may not be fully suited to Kenyan conditions.
First-time buyers are generally better off purchasing locally. Local dealerships simplify the process with tailored financing options and instant availability, sparing buyers the hassle of long import delays.
For business owners looking to build or expand a fleet, local purchases are often the smarter choice. They offer consistent support, financing options, and warranties, along with dependable maintenance services, ensuring minimal disruptions to operations.
Although importing might seem cheaper by cutting out the middleman – potentially saving up to 25% – current tax structures, fluctuating exchange rates, and the weakening Kenyan shilling have largely erased this advantage for most buyers.
Conclusion: Choose What Works for You
Deciding between importing a car and buying locally depends on your specific needs, budget, and timeline. With import duties climbing to 35% in 2025, the cost advantage of bringing in vehicles from abroad has diminished significantly. For some models, taxes can rise as high as 145% starting July 1, 2025. Charles Munyori, Secretary-General of the Kenya Auto-Bazaar Association, explains that "small engine vehicles are the ones that have been hit hardest".
Locally purchased cars are often better suited for Kenya’s unique conditions. They come equipped with sensor parameters, high-tension coil springs, and engine configurations designed for the local weather and terrain. In contrast, many imported models may struggle to perform optimally in these environments. Additionally, local vehicles provide easier access to spare parts, certified mechanics, and better resale value. For instance, Japanese vehicles typically retain 60–70% of their purchase price after three years.
Importing might still be an option if you’re looking for specific or specialized models unavailable locally. However, keep in mind that vehicles older than eight years are not eligible for first-time importation.
Before making your decision, use tools like the KRA motor vehicle import duty calculator and review the updated Current Retail Selling Price list on the KRA website. For more complex cases, consulting clearing agents is highly recommended.
Ultimately, for most Kenyan buyers, local purchases offer the best combination of convenience, cost-effectiveness, and after-sales support.
FAQs
What should I consider when choosing between importing a car and buying one locally in Kenya?
When choosing between importing a car and buying one locally in Kenya, there are several important factors to consider. Taxes and duties play a significant role in the final cost of an imported car. For instance, you’ll face charges like a 35% import duty and a 16% VAT, which can quickly add up. On top of that, importing a car often involves longer delivery times – think weeks or even months – whereas locally purchased vehicles are readily available.
Another key factor is suitability for the environment and ease of maintenance. Cars sold locally are often better suited for Kenya’s road conditions and climate, which can translate to fewer maintenance headaches over time. Plus, buying locally tends to mean more predictable ownership costs and easier access to spare parts. It’s also worth noting that government policies favoring local manufacturing, combined with the fact that about 80% of car imports are used vehicles, could influence your decision.
In the end, it’s all about weighing the costs, convenience, and long-term reliability to find the option that works best for you.
How do government taxes and policies affect the cost of importing cars versus buying locally in Kenya?
Government taxes and policies heavily influence the cost of importing vehicles into Kenya. For instance, import duties have seen a steady increase, climbing from 25% in 2019 to 35% by 2025. On top of that, additional taxes like excise duties (ranging from 25% to 35%), VAT at 16%, and railway development levies all contribute to the final price tag.
These combined costs, along with stricter regulations and enforcement, have driven up vehicle import prices by an estimated 10–20%. On the other hand, cars purchased locally often bypass many of these fees, making them a more budget-friendly choice for many buyers. That said, factors like the availability and quality of local vehicles should also weigh into the decision-making process.
What are the benefits of buying a car locally in Kenya compared to importing one, especially for warranty and after-sales support?
Buying a car locally in Kenya offers some clear perks, especially when it comes to warranty and after-sales support. Local dealerships usually provide warranties that are straightforward to claim, along with access to authorized service centers for maintenance and repairs. This means faster service and fewer complications compared to dealing with international warranty processes.
On top of that, local purchases often come with extras like free service packages, easily accessible spare parts, and direct assistance from the dealership. These added benefits can save you both time and money, making it a more practical and hassle-free choice for many car buyers in Kenya.
