One of the biggest mistakes importers make is underestimating the true cost of import duty in Kenya. Many only look at the supplier’s invoice price—then get shocked when customs taxes are assessed.
In this article, we break down exactly how import duty in Kenya is calculated, the taxes involved, real-life examples, and how Clearon Logistics helps importers avoid costly surprises and penalties.
What Is Import Duty in Kenya?
Import duty is a government tax charged on goods entering Kenya, collected by the Kenya Revenue Authority (KRA).
It is meant to:
- Protect local industries
- Generate national revenue
- Regulate imports
Import duty is not a single tax—it is a combination of multiple charges.
Taxes Charged on Imports in Kenya
When importing into Kenya, you may pay:
- Import Duty
- Value Added Tax (VAT)
- Import Declaration Fee (IDF)
- Railway Development Levy (RDL)
- Excise Duty (for specific goods)
- Permit Fees (depending on product)
Each applies differently depending on the goods.
Step-by-Step: How Import Duty Is Calculated in Kenya
Step 1: Determine the Customs Value (CIF)
Kenya uses CIF value, which includes:
- Cost of goods
- Insurance
- Freight
Formula:
CIF = Cost + Insurance + Freight
Step 2: Identify the HS Code
Every product has an HS (Harmonized System) Code, which determines:
- Import duty rate
- VAT applicability
- Excise duty (if any)
Wrong HS codes = wrong taxes + delays + penalties.
Step 3: Apply the Taxes
Here’s how taxes are calculated:
- Import Duty = CIF × Duty Rate
- IDF = 2% of CIF
- RDL = 2% of CIF
- VAT = 16% of (CIF + Import Duty + Excise Duty)
Real Example: Importing Electronics into Kenya
Product: Smartphones
CIF Value: KES 1,000,000
Import Duty Rate: 25%
Calculation:
- Import Duty:
25% × 1,000,000 = KES 250,000 - IDF (2%):
2% × 1,000,000 = KES 20,000 - RDL (2%):
2% × 1,000,000 = KES 20,000 - VAT (16%):
16% × (1,000,000 + 250,000) = KES 200,000
Total Taxes Payable:
➡ KES 480,000
This surprises many first-time importers.
Example 2: Importing Machinery (Lower Duty)
Product: Industrial machinery
CIF Value: KES 2,000,000
Import Duty Rate: 0%
Taxes:
- Import Duty: KES 0
- IDF: KES 10,000
- RDL: KES 40,000
- VAT (16%):
16% × 2,000,000 = KES 320,000
➡ Total Taxes: KES 370,000
Correct classification saved the importer hundreds of thousands.
Products That Attract Higher Taxes
High-tax items include:
- Alcohol & tobacco
- Motor vehicles
- Cosmetics
- Electronics
- Used goods
Some items also attract excise duty, increasing costs significantly.
Common Import Duty Mistakes Importers Make
1. Using Wrong HS Codes
This leads to:
- Overpayment
- Underpayment (penalties)
- Delays
2. Under-Declaring Value
KRA uses reference pricing.
If values don’t match:
- Revaluation occurs
- Fines apply
- Clearance delays follow
3. Ignoring Permit Costs
Permits add both:
- Time
- Additional fees
Can Import Duty Be Reduced Legally?
Yes—through:
- Correct HS classification
- Using exemptions (if applicable)
- Importing under approved schemes
- Proper documentation
❌ Illegal shortcuts lead to seizure and penalties.
How Clearon Logistics Helps You Calculate Import Duty Accurately
Clearon Logistics provides:
- Pre-import tax estimation
- HS code verification
- Permit guidance
- Transparent cost breakdowns
- Compliance with KRA regulations
We calculate before your cargo arrives—so there are no shocks.
Why Accurate Duty Calculation Matters
Accurate duty calculation helps you:
- Price products correctly
- Avoid penalties
- Plan cash flow
- Reduce clearance delays
- Improve profitability
Why Importers Choose Clearon Logistics
✔ Experienced clearing agents
✔ Accurate duty estimation
✔ Faster clearance
✔ Transparent pricing
✔ Support at Mombasa & JKIA
We don’t guess—we calculate and advise correctly.
Final Thoughts
Understanding the cost of import duty in Kenya is essential for any importer. Taxes are predictable when done correctly—and expensive when done wrong.
If you want accurate calculations, compliance, and peace of mind, Clearon Logistics is your trusted partner.
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