KRA waives import and excise duty, VAT and IDF taxes for Kenyans returning home
KRA waives import and excise duty, VAT and IDF taxes for Kenyans returning home
Kenyans living abroad who want to bring their cars home now have a clear path to avoid paying hefty import taxes under new guidelines.
The Kenya Revenue Authority (KRA) has outlined the conditions that returning residents must meet to qualify for tax exemptions on imported vehicles and personal belongings.
Under the exemption regime, qualified individuals will not pay Import Duty, Excise Duty, Value Added Tax, or Import Declaration Fee on eligible goods brought back home.
The tax relief applies to wearing apparel, personal and household effects, and one motor vehicle that meets specific conditions set by the taxman in 2026.
To qualify, returning residents must demonstrate they have resided outside Kenya by presenting valid passports, visas, or work and student permits to customs officials.
Evidence of a permanent change of residence back to Kenya, as shown by passport entry endorsements, is also required before the KRA can grant the exemption.
For motor vehicles, owners must prove they personally owned and used the car outside Kenya for at least twelve months before shipping it home.
The vehicle must be no more than eight years old from the date of manufacture, and it must arrive within 90 days of the return.
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Buses and minibuses with seating capacity exceeding thirteen passengers, plus load-carrying vehicles over two tonnes, do not qualify for the tax waiver scheme.
On the other hand, spouses and children aged 18 years and above can also benefit from the exemption if they meet all conditions independently as returning residents.
Foreign spouses who are not Kenyan citizens may receive a tax exemption on a first-arrival basis if they execute assignments under contracts of two years.
Returning residents from countries that operate left-hand-drive vehicles must also provide proof of disposal of their Left-Hand-Drive (LHD) vehicle before importing a replacement Right-Hand-Drive vehicle.
The replacement right-hand-drive vehicle’s value must not exceed that of the previously owned left-hand-drive vehicle disposed of in the former country.
Required documents include passports, residence permits, Interpol clearance for vehicles, PIN certificates, bills of lading, invoices, and logbook copies for processing exemptions.
Applicants must engage licensed customs clearing agents to process exemptions through the Integrated Customs Management System for successful importation and tax relief approval.
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