One of the biggest questions importers ask is, “Why did my cargo cost this much to clear?” The answer almost always comes down to import duty and taxes. Understanding how these charges are calculated can save you from surprises, help you plan your costs better, and avoid disputes with suppliers or clearing agents.

If you’re importing through Kenya—especially via Mombasa Port or inland container depots—this guide will help you understand what you’re paying for and why.

The Main Taxes You Pay When Importing into Kenya

When goods arrive in Kenya, several charges may apply depending on the type of product:

• Import Duty
• Value Added Tax (VAT)
• Import Declaration Fee (IDF)
• Railway Development Levy (RDL)
• Other agency fees or permits (for regulated goods)

Not every product pays the same rate. Some items attract higher duty, some lower, and some may even be exempt. That’s why a one-size-fits-all flat rate for clearance can be misleading.

Step 1: Determining the Customs Value

Before any tax is calculated, customs first determines the customs value of your goods. This is usually based on:

• The cost of the goods
• Insurance
• Freight (shipping cost)

Together, this is often referred to as the CIF value (Cost, Insurance, and Freight). All major taxes are calculated from this base value or from amounts derived from it.

For example, if you import machinery worth a certain amount and add shipping and insurance, customs will use that total to start calculating duty and taxes.

Step 2: Applying Import Duty

Import duty is calculated as a percentage of the customs value. The rate depends on the type of goods you are importing. For instance:

• Some raw materials may attract low or zero duty
• Finished consumer goods often attract higher duty
• Certain essential or strategic items may have special rates or exemptions

This is why two importers bringing in different products can pay completely different amounts, even if the shipment value looks similar.

Step 3: Adding IDF and RDL

After duty is calculated, additional levies are applied:

• IDF (Import Declaration Fee) is usually charged as a percentage of the customs value
• RDL (Railway Development Levy) is also charged as a percentage of the customs value

These charges apply to most imports and are standard parts of the clearance process in Kenya.

Step 4: Calculating VAT

VAT is then calculated on a larger base that includes:

• Customs value
• Import duty
• IDF
• RDL

This means VAT is not just charged on the goods alone—it is charged on the total landed cost plus certain taxes. This is often what surprises new importers.

Why Flat-Rate Clearance Quotes Can Be Misleading

Some people are tempted by “cheap” or “flat-rate” clearance offers. The problem is that taxes are set by law and vary by product. A clearing agent cannot legally charge the same amount of duty for electronics, furniture, spare parts, and food items.

Also, not all goods require the same permits. Some need KEBS, some need health or agriculture approvals, and some need no extra permits at all. Charging one flat fee ignores these differences and often leads to:

• Unexpected extra charges later
• Delays in clearance
• Disputes and mistrust

How Clearon Logistics Helps You Plan Your Costs

At Clearon Logistics, we believe in transparent, item-based costing. We don’t guess your charges—we calculate them based on your actual product, value, and applicable regulations.

We help you:

• Estimate your taxes before you ship
• Understand which permits apply to your goods
• Avoid under-declaration or overpayment
• Clear your cargo efficiently and legally

This means no nasty surprises and no unnecessary delays at the port.

A Practical Example

Imagine importing two containers: one with clothing and another with machinery parts. Even if both containers have the same shipping cost, the duty rate, permits, and total taxes will be different. A professional clearing partner will explain these differences upfront and help you budget correctly.

Import Smarter, Not Blindly

Understanding how import duty and taxes are calculated in Kenya gives you control over your business costs. And working with a reliable clearing and forwarding company ensures you don’t learn these lessons the hard way.

If you want accurate cost estimates, smooth clearance, and honest guidance, Clearon Logistics is ready to handle your imports professionally—from paperwork to final delivery.