1. Car Price (New or Used)
The base price depends on whether you’re buying new or used:
- New cars: Start from KSh 1.5 million for entry-level models like Suzuki Siaz or VW Polo.
- Used imports: Can start from KSh 400,000 for older models like Nissan B15 or Mazda Demio.
- Local used cars: Typically cost slightly more than imported ones due to lower import duties.
2. Import Duty (For Used Cars)
If buying an imported second-hand vehicle, expect to pay:
- Customs duty: 25% of CIF (Cost, Insurance, Freight)
- Excise duty: 20% of (CIF + Customs Duty)
- VAT: 16% of (CIF + Customs + Excise)
- Import Declaration Fee (IDF): 2.5% of CIF (capped at KSh 30,000)
Total import taxes can add up to 60–80% of the car’s purchase price.
3. Registration & Licensing Fees
After purchase, you must register and license your car through NTSA:
- Logbook transfer fee: ~KSh 2,000–3,000
- License disc (annual): ~KSh 2,500–5,000 depending on engine size
- Insurance: Minimum third-party cover starts at ~KSh 8,000/year
4. Insurance Costs
Insurance is mandatory and varies based on coverage:
- Third-party only: ~KSh 8,000–15,000/year
- Comprehensive insurance: ~KSh 25,000–60,000/year depending on value
Premiums are higher for newer and more expensive vehicles.
5. Additional Costs
Other expenses may include:
- Mechanic inspection (for used cars): ~KSh 2,000–5,000
- Loan interest (if financing): 12–20% annual rate
- Agency fees (if using a broker): ~KSh 10,000–30,000
Final Tips
- Always calculate total ownership cost before buying.
- Compare new vs used including taxes and insurance.
- Use online calculators to estimate import duties.
- Negotiate where possible, especially with private sellers.
Conclusion
Buying a car in Kenya involves more than just the sticker price. From import duties to insurance and licensing, understanding the full cost helps you make a smart, budget-friendly decision.