Govt Increases Vehicle Importation Duty

Imported Cars
Imported cars being unloaded from a ship that docked at a port of entry.
Photo
CarLife

Kenyans will fork out more to import vehicles after the Kenyan government increased the vehicle importation duty.

According to an East African Community (EAC) Gazette published on June 30, 2023, the Kenyan government raised the duty rate on vehicle imports from 25% to 35%

Instructively, the gazette notice noted that all other countries within the community including the Democratic Republic of the Congo, Tanzania, Burundi, Rwanda and South Sudan agreed to retain the EAC Common External Tariff (CET) of 25 per cent.

According to the notice, the countries used a CET rate for imported goods, meaning that the rates applied across the board and there was no need for countries to negotiate individually.

President William Ruto making an address during Ushirika Day at State House Nairobi on July 1, 2023.
President William Ruto making an address during Ushirika Day celebrations at State House Nairobi on July 1, 2023.
PCS

All Motor vehicles of tariff headings 8702, 8703 and 8704 currently attracting a Common External Tariff (CET) rate of 25 per cent.

“Kenya is to stay of application of the East African Community CET rate of 25 per cent and apply the duty rate of 35 per cent,” the notice read in part.

At the same time, the government increased the importation duty on mobile phones. According to the notice, Kenya planned to stay the application of the East African Community Rate of zero per cent and apply a duty rate of 25 per cent for one year.  

Other items that recorded an increase in importation duty included clothing. The notice stated that “Kenya will stay application of EAC CET rate and apply a duty rate of 35 per cent.”

Tiles also made the list with Kenya, Uganda, and Burundi staying the application of the EAC CET rate of 25 per cent, applying a duty rate of 35 per cent for one year. 

The EAC gazette also noted that the government would increase importation duty for television sets increasing the rates by 10 per cent. 

"Kenya to stay application of the East African Community Common External Tariff (CET) rate of 25 per cent and apply a duty rate of 35 per cent for one year," added the notice. 

At the same time, Kenya and Uganda chose to increase the import duty rates for the containers for compressed or liquefied gas, of iron or steel. 

"Uganda and Kenya to stay application of the EAC CET rate of 0% on Liquified Petroleum Gas Cylinders and apply a duty rate of 35% for one year," the notice stated. 

The move came at a time when the Kenya Bureau of Standards(KEBS) was on high alert over stolen high-end vehicles that were being imported into the country from the United Kingdom(UK). 

Photo of Vehicles loaded on a car haulier captured on September 2019
Photo of Vehicles loaded on a car haulier captured on September 2019.
Photo
IndiaMart
  • . .