What to Do If Your Car Is Stuck at Mombasa Port Because You Can’t Pay Taxes

So, your car has landed at Mombasa Port. You were excited to finally get the keys, but now you're staring at a massive tax bill from KRA—and you can’t pay it. You're not alone. Hundreds of Kenyans are finding themselves in this exact situation after the July 2025 tax hikes under the new CRSP system.

What happens next? Will you lose your car? Are there legal consequences? And is there a way to clear it without selling your soul—or the car?

This guide walks you through what to do if your imported car is stuck at the port, your options for financing, and how to avoid similar situations in the future.

🚧 Why Your Car Is Stuck at Mombasa Port

Here’s how it usually plays out:

1. You import a car (new or second-hand) through Japan, the UK, or Dubai.
2. The car arrives at Mombasa Port.
3. You receive your tax invoice from KRA—which includes:
   • Import duty (25%)
   • Excise duty (20–35%, now based on CRSP)
   • VAT (16%)
   • IDF + Railway Levy

And the grand total? Sometimes KES 600,000 to 1.8 million or more, depending on the car’s make, engine size, and age.

Many importers did not anticipate the July 2025 CRSP update, which sharply increased valuations and, by extension, taxes.

🚗 What Happens If You Don’t Pay?

If you delay payment:

• KRA won't release the customs clearance certificate (Form C17).
• Your clearing agent can't process the car through NTSA.
• The vehicle sits at the port, accumulating demurrage (storage) fees daily.
• After a certain period (usually 21–30 days), KRA can classify it as abandoned and auction it off.

In other words, you risk losing both the car and your deposit.

✅ 5 Solutions If You Can’t Pay Port Taxes

1. Get a Duty Loan from a Logbook Loan Provider

Some lenders—especially those who offer logbook loans—also offer Duty Loans, which:

• Are paid directly to your clearing agent or KRA
• Are secured against the value of the car
• Allow you to clear the car, register it, and get the logbook
• Can be converted into a logbook loan once registration is complete

💡 Tip: Kifedha offers structured duty loans tailored to high-CRSP vehicles stuck at Mombasa. Talk to us before demurrage kills your budget.

2. Use Another Car's Logbook as Collateral

If you (or a family member) own a car with a clean NTSA logbook:

• Apply for a logbook loan against that car
• Use the funds to pay port taxes
• Once your imported car is registered, you can refinance it

This works faster than most banks, with disbursement in under 48 hours.

3. Negotiate with Your Clearing Agent

Sometimes, clearing agents offer:

• Extended payment plans
• Partnership with third-party financiers
• Split clearance (you pay tax, they handle fees)

Don’t assume you’re stuck—ask about deferred clearance terms or “release on bond.”

4. Seek a Partner or Investor to Co-own

If you can’t raise the full amount, consider:

• Joint registration with a business partner
• Temporary third-party financing (e.g., friend or family member)
• A signed agreement to repay over time (preferably notarized)

Be careful—only do this with someone you trust completely and ensure all ownership and loan terms are in writing.

5. Sell the Vehicle While at the Port

If all else fails, you can:

• Sell the car “in bond” or “at port” to another buyer
• Transfer the invoice and ownership
• Recover at least part of your investment

This is better than losing the car at auction. Many car yards and import dealers are open to buying cars in port at a discount.

📉 How the New CRSP Taxes Made Things Worse

Under the revised Current Retail Selling Price (CRSP) model introduced in July 2025:

• KRA now values cars based on retail prices, not auction prices
• Excise duty and VAT are applied on these inflated values
• Even low-mileage, older cars are affected

Example:

This has blindsided importers, especially those who ordered cars before the update was announced.

🛡️ How to Avoid This Situation in the Future

🆘 Final Word

A car stuck at the port is more than just an inconvenience—it’s a ticking financial time bomb. Every day costs you in storage and opportunity.

But you’re not helpless. With the right support and strategy, you can:

• Clear the car
• Register it legally
• Get it on the road—and even turn it into a source of funding

👉 Need help clearing your car at the port or funding the taxes?
Apply for a duty loan now

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 options.