The Kenyan government has increased the import duty fee for second-hand cars from 25% to 35%. This is according to a June 30, 2023, EAC Gazette notice.
The increase in import duty applies specifically to vehicles falling under tariff codes 8702, 8703, and 8704 as defined in the EAC Common External Tariff (CET) of 2022. Tariff code 8702 includes motor vehicles designed to transport ten or more persons, including the driver.
Tariff code 8703 covers motor cars and other vehicles primarily intended for the transportation of persons. For example, station wagons and racing cars. Tariff code 8704 refers to motor vehicles intended for the transportation of goods.
While Kenya has decided to raise the import duty to 35%, other East African Community (EAC) countries chose to retain the EAC Common External Tariff (CET) rate of 25%.
These changes mean that car dealers and importers are likely to significantly increase the price of imported cars. Additionally, cars ordered with a 25% import duty shall now attract a 35% import duty on arrival effective July 1, 2023.
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