1. What is KRA Motor Vehicle Duty?

The Kenya Revenue Authority (KRA) imposes import duty and VAT on motor vehicles imported into Kenya. The duty is calculated based on the CIF value (Cost, Insurance, and Freight) plus customs value, with additional VAT applied to the total.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value in KES
• \( Customs\ Value \) — Assessed customs value of the vehicle
• \( Duty\ Rate \) — Percentage duty rate (typically 25%)
• \( VAT \) — Value Added Tax (typically 16%)

Explanation: The duty is calculated on the combined CIF and customs value, then VAT is applied to the total of CIF, customs value, and duty.

3. Importance of Duty Calculation

Details: Accurate duty calculation helps importers budget for vehicle importation costs and ensures compliance with KRA regulations.

4. Using the Calculator

Tips: Enter CIF value and customs value in KES, duty rate (typically 25%), and VAT rate (typically 16%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is CIF value?
A: CIF stands for Cost, Insurance, and Freight - the total value of the vehicle including purchase price, insurance, and shipping costs to Kenya.

Q2: How is customs value determined?
A: Customs value is assessed by KRA based on the vehicle's make, model, year, and condition. It may differ from purchase price.

Q3: Are there exemptions or reductions?
A: Some vehicles (e.g., ambulances, government imports) may qualify for exemptions. Check with KRA for specific cases.

Q4: What other charges apply to vehicle imports?
A: Additional charges may include excise duty, import declaration fee (IDF), and railway development levy (RDL).

Q5: How current are these rates?
A: Rates are subject to change. Always verify current rates with KRA before finalizing any import transaction.