4 min read Tips

Guide 4: The Real Cost of Importing a Car to Kenya – Avoid Hidden Fees & Costly Mistakes

Guide 4: The Real Cost of Importing a Car to Kenya – Avoid Hidden Fees & Costly Mistakes

Introduction

Importing a car from Japan to Kenya can save you money, but hidden costs and common mistakes can make it much more expensive than expected. From import duties and shipping fees to port clearance charges and penalties, failing to budget correctly can lead to costly surprises.
This guide will help you:
✅ Understand the true cost of importing a car (including taxes, fees, and additional charges).
✅ Avoid common mistakes that cost buyers thousands (like late port clearance or missing inspections).
✅ Learn how to budget properly so your car arrives in Kenya without financial surprises.

This is Guide 4 in our four-part series to get you shipping your dream car from Japan to Kenya like a Pro!

If you haven’t read the earlier Guides, start with:

Guide 1: How to Import a Car from Japan to Kenya – Full Process, Costs & Expert Tips
In this first guide of our three-part series, we will walk you through every step of the importation process, from selecting your car to driving it home. We will break down all the costs involved, share money-saving tips and and help you avoid the common pitfalls
Kifedha Credit | All About MoneyEunice Wanjiru

Make sure you read Guide 2 to help you navigate Japanese auctions

Guide 2: How to Buy a High-Quality Car from a Japanese Auction – Grading, Bidding & What to Avoid
Buying from a Japanese car auction gives you access to high-quality, well-maintained cars at lower prices—but only if you understand how the auction system works. This article demystifies the auction process and turns you into a confident bidder.
Kifedha Credit | All About MoneyEunice Wanjiru

Section 1: The Real Cost of Importing a Car to Kenya

  1. Import Duties & Taxes (KRA Fees)
    Many buyers focus only on the auction price but forget about import taxes, which can significantly increase the total cost.

Tax Type

How It's Calculated

Import Duty

25% of the car's customs value (CIF)

Excise Duty

20% for engine size <1500cc, 35% for >1500cc

VAT (Value Added Tax)

16% of (CIF + Import Duty + Excise Duty)

Railway Development Levy (RDL)

1.5% of CIF value

Import Declaration Fee (IDF)

2.25% of CIF value

📌 Solution: Use the KRA Import Duty Calculator (kra.go.ke) before buying to estimate total costs accurately.
🚨 Common Mistake: Many buyers fail to calculate taxes in advance and end up with unexpected costs at the port.

2.Pre-Shipment Inspection Fees (JEVIC/QISJ)

Kenyan law requires all imported vehicles to be inspected before shipping to ensure they meet safety and quality standards.

Inspection Type

Cost (Approximate)

JEVIC Inspection

$150 – $250

QISJ Inspection

$150 – $250


🚨 Penalty for Missing Inspection: If your car arrives without a JEVIC/QISJ certificate, you’ll pay a 15% penalty on top of the import duty and face possible delays.
📌Solution: Always confirm JEVIC/QISJ certification before shipping to avoid fines.

3.Port Clearance & Storage Fees

Clearing your car from Mombasa port can take longer than expected, leading to storage fees if delayed.

Fee Type

Approximate Cost

KPA Wharfage Fee

2.5% of CIF value

KRA Processing Fee

Ksh 5,000 – Ksh 10,000

Port Storage Fees

Ksh 3,000 – Ksh 5,000 per day after the free period (usually 7 days)

Clearing Agent Fee

Ksh 20,000 – Ksh 50,000

🚨Common Mistake: Buyers don’t hire a clearing agent in advance, causing delays and extra fees.
📌Solution: Work with a licensed clearing agent to avoid unnecessary port storage fees and customs issues.

4.Shipping Costs & Marine Insurance

Shipping costs vary based on the shipping method and insurance coverage.

Expense

Cost (Approximate)

Roll-on/Roll-off (RoRo) Shipping

$1,000 – $1,500

Container Shipping

$2,000 – $3,500

Marine Insurance

1% – 2% of CIF value

🚨 Common Mistake: Some buyers assume shipping is included in the auction price.
📌 Solution: Get a shipping quote before bidding and opt for marine insurance to protect against damage.

Section 2: Common Mistakes to Avoid

🚨Avoid These Costly Mistakes:
1️⃣ Ignoring the Full Auction Sheet – Some buyers assume a Grade 4+ car has no issues. Always read the full report.
2️⃣ Underestimating Taxes & Fees – Many buyers focus only on the car’s purchase price. Make sure you Use the KRA Duty Calculator.
3️⃣ Choosing the Wrong Import Agent – Some agents inflate costs or fail to disclose full fees. Verify their reputation.
4️⃣ Delaying Port Clearance – Late clearance leads to storage fees at Mombasa port. Plan for immediate processing.

📌Now that you know the hidden costs and mistakes, you are ready to import your car confidently!

Conclusion: Final Steps to a Successful Import
Now you know how to avoid hidden costs and costly mistakes!

🚗Use the KRA duty calculator to estimate your full import costs.

🚗Ensure pre-shipment inspection to avoid penalties.

🚗Clear your car from Mombasa port on time to avoid extra fees.

🚗Work with trusted agents to keep costs transparent.

This is the final guide in our four-part series! If you haven’t read the earlier guides, start from: How to Import a Car from Japan to Kenya – Full Process, Costs & Expert Tips, How to Buy a High-Quality Car from a Japanese Auction – Grading, Bidding & What to Avoid, and How to Find a Trusted Car Import Agent in Kenya & Avoid Costly Scams.

🎯 With the right knowledge, you can now import your dream car without surprises!

Remember, if you need financial assistance, contact us through our contact form, call us on +254791573231 or visit one of our branches  across Nairobi, Kiambu, Machakos, and Kajiado counties to explore your financial opportunities.

Apply for a Logbook Loan