How to Save Big on Import Duties When Bringing a Pickup Truck into Kenya
If you're planning to import pickup trucks in Kenya, especially popular models like the Toyota Hilux pickup truck or Isuzu D Max, you already know the excitement... and the potential cost. The government charges a host of taxes, including import duty, excise, VAT, and more, all calculated based on your truck’s CIF (Cost, Insurance, Freight) value.
But here’s the good news: there are legit, legal ways to slash thousands off your bill if you know what you’re doing.
Let’s break it down, step-by-step, so you can bring in that used pickup truck without draining your wallet.
Request a Split Invoice (FOB + Freight + Insurance)
One of the smartest tricks when importing is to request a split invoice. Instead of one lump-sum invoice, ask your supplier to list the FOB (Free on Board) price separately from Freight and Insurance. Why does this matter? Because Kenya Revenue Authority (KRA) calculates duty on the CIF value, if freight or insurance is inflated, so are your taxes.Example:
If you’re importing a Toyota Hilux pickup truck from Japan and the CIF value is KES 2.5 million, your total taxes (import duty, excise, VAT, IDF, and RDL) could exceed KES 1.4 million. But if you break it down correctly and use accurate market FOB values, your taxes could be reduced significantly.Choose a Pickup Classified as “Passenger Vehicle”
Here’s a little-known fact: Some used pickup trucks qualify as “passenger vehicles” if they have extra rear seats or are double cabs.Why it matters:
Passenger vehicles attract lower excise duty (20%) compared to commercial pickups (30% or more). So when choosing between models like the Toyota Hilux pickup truck, look for double-cab versions with extra seats to maximize tax efficiency.Use the Returning Resident Exemption
If you've been living abroad for over two years and you're moving back to Kenya, you're in luck! As a returning resident, you can import one used pickup truck duty-free, provided:- You've owned and used it for 12+ months
- You import it within 90 days of arriving in Kenya
Import a Vehicle Just Before It Hits the 8-Year Limit
In Kenya, vehicles over 8 years old are not allowed for import. But here’s the trick: import your used pickup truck when it’s 7 years and 10–11 months old. Why? Because depreciation plays in your favor. Customs calculates taxes based on the depreciated value; the older the truck (within limits), the cheaper the CIF, and hence, the lower overall duty.Check the Vehicle's Engine Size
Engine size = tax trigger. In Kenya:- ≤1500cc vehicles attract a 20% excise duty
- >1500cc attracts 25% excise (on top of other taxes)
Import from a Country with Lower Freight Costs
Freight charges differ based on origin. For example:- Shipping from the UAE or Japan to Mombasa is cheaper than from the UK or the US.
Use a Trusted Clearing Agent
Trying to do it all yourself? You might end up paying more. A good clearing agent helps:- Classify your vehicle correctly
- Negotiate the best customs value
- Avoid fines and unnecessary charges
