Importing goods into Kenya can be highly profitable — but only if you understand how import duty is calculated.
Many importers lose money not because of bad business, but because they miscalculate customs charges, underestimate taxes, or rely on guesswork.
In this detailed guide, you’ll learn exactly how import duty in Kenya is calculated, using real figures, formulas, and practical examples — the same way customs officers do.
What Is Import Duty in Kenya?
Import duty is a tax charged by the Kenya Revenue Authority (KRA) on goods brought into the country.
It is calculated based on the customs value of the goods, classification (HS Code), and applicable tax rates.
Import duty is mandatory and must be paid before cargo is released.
Key Taxes Charged on Imports in Kenya
Before calculating, you must understand the main charges applied to imports:
- Customs Import Duty (varying percentage)
- Import Declaration Fee (IDF) – 2.5%
- Railway Development Levy (RDL) – 2%
- Value Added Tax (VAT) – usually 16%
⚠️ Not all goods attract the same import duty rates — this depends on the HS Code.
Step 1: Understand the CIF Value (Very Important)
All import taxes in Kenya are calculated based on CIF Value, not just the price of goods.
CIF Means:
- C – Cost of goods
- I – Insurance
- F – Freight (shipping cost)
CIF Formula
CIF = Cost of Goods + Insurance + Freight
Example 1: CIF Calculation
You import electronics from China:
- Cost of goods: USD 10,000
- Freight cost: USD 2,000
- Insurance: USD 200
CIF = 10,000 + 2,000 + 200
CIF = USD 12,200
This USD 12,200 is the base value used by KRA. (Usually converted to KES as per the currency exchange rate in the beginning of that week)
For the purpose of this example we presume the exchange rate to be 1 USD equals 129KES.
USD 12,200 * 129 = KES 1,573,800
Step 2: Determine the HS Code
The HS Code (Harmonized System Code) determines:
- Import duty rate
- VAT applicability
- Any exemptions or restrictions
❗ Wrong HS Code = penalties, delays, or overpayment.
For this example, assume:
- HS Code attracts 25% import duty
Step 3: Calculate Import Duty
Import Duty Formula
Import Duty = CIF × Import Duty Rate
Example Calculation
Import Duty = 1,573,800 × 25%
Import Duty = KES 393,450
Step 4: Calculate VAT on Imports
VAT is calculated after adding CIF + Import Duty
VAT Formula
VAT = (CIF + Import Duty) × 16%
Example
VAT Base = 1,573,800 + 393,450
VAT Base = KES 1,967,250
VAT = 1,967,250 × 16%
VAT = KES 314,760
Step 5: Calculate Import Declaration Fee (IDF)
IDF is charged at 2.5% of CIF value, subject to a minimum.
IDF Formula
IDF = CIF × 2.5%
Example
IDF = 1,573,800 × 2.5%
IDF = KES 55,083
Step 6: Calculate Railway Development Levy (RDL)
RDL is charged at 2% of CIF value.
RDL Formula
RDL = CIF × 2%
Example
RDL = 1,573,800 × 2%
RDL = KES 31,476
Step 7: Total Import Taxes Payable
Final Breakdown
| Charge | Amount (KES) |
|---|---|
| Import Duty | 393,450 |
| VAT | 314,760 |
| IDF | 55,083 |
| RDL | 31,476 |
| Total Taxes | 794,769 |
Common Mistakes Importers Make (Costly!)
❌ Using wrong HS Code
❌ Forgetting VAT applies on CIF + duty
❌ Under-declaring CIF value
❌ Ignoring IDF & RDL
❌ Relying on estimates instead of exact calculations
These mistakes often lead to:
- Overpayment
- Penalties
- Cargo delays
- Demurrage charges
Why Many Importers Choose a Clearing Agent
Even with the formula, real-life customs clearance is more complex:
- HS code interpretation
- KRA valuation adjustments
- Currency conversion rates
- Regulatory approvals (There are other permits such as KEBS, PPB, KEPHIS, ACA etc. which require additional payments)
Professional clearing agents:
- Calculate charges accurately
- Prevent penalties
- Speed up clearance
- Reduce overall costs
How Clearon Logistics Helps Importers Save Money
At Clearon Logistics, we:
✔ Classify goods correctly
✔ Calculate exact import taxes
✔ Handle KRA entries professionally
✔ Prevent delays & demurrage
✔ Offer transparent cost breakdowns
Instead of guessing, you know your costs upfront.
Frequently Asked Questions
Is import duty the same for all goods in Kenya?
No. Rates depend on HS Code and product category.
Does VAT apply to all imports?
Most imports attract VAT unless exempt.
Can KRA change the declared value?
Yes. KRA can revalue goods if they suspect under-declaration.
Final Thoughts
Understanding how to calculate import duty in Kenya gives you control over your business costs.
But doing it correctly and consistently requires expertise.
If you want accurate calculations, fast clearance, and peace of mind, working with a professional clearing agent is the smartest move.
Need Help Calculating Your Import Duty?
Contact Clearon Logistics today for accurate, transparent, and professional clearing services.
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