Buy/Import Duty-Free Cars for Returning Residents
Duty Free Imports For Returning Residents
If you have been living abroad and are planning to return to Kenya to stay, you will be happy to know that the government offers you a chance to import a vehicle tax-free!
This duty-free privilege is specifically extended to Kenyans or Kenyan citizens currently living in left hand drive countries (traffic flows on the right) such as the USA, Canada, China, and many parts of Europe. The premise is that the government allows you to ‘replace’ the vehicle you are currently driving with one that complies with Kenya’s left hand driving regulations (traffic flows on the left).
If you are relocating from a country that already drives on the left-hand side of the road such as the UK, then you are allowed to bring in your vehicle duty-free, as long as it meets the set criteria.
A returning resident is anyone who has been residing in another country for a period of two years and above, and is now returning to Kenya permanently. Similarly, they should not have stayed in Kenya for a period totalling three months within these two years.
What are the requirements for importing a duty-free vehicle as a returning resident?
While the offer is a definite plus and designed to make you mobile in no time upon your return, it does come with some conditions. These are:
- The vehicle must meet all KEBS (Kenya Bureau of Standards) requirements, most importantly the 8yr age limit and inspection for compliance.
- You must show proof that you owned a vehicle in your country of residence for a period of one year.
- Similarly, you must prove that you have disposed of the vehicle before coming back to Kenya (e.g. by showing sales receipt, sales agreement, transfer of ownership etc.)
- The cost of the new vehicle that you will purchase should not exceed the cost of the one that you will be replacing.
- In relation to point 4 above, the vehicle being imported into Kenya should be of the same category as the one you owned previously in terms of engine size, make and year of manufacture.
- You cannot import a bus or minivan with more than 13 seats, or a load carrying vehicle with a capacity over two tons.
- You must be over 18 years old, and must be relocating to Kenya permanently and not visiting for a short time.
All conditions set out in the 5th Schedule of the East African Community Management Act of 2004 regarding the importation of personal effects by a returning resident must be met.
What documents do I Need to Import a Vehicle to Kenya as a Returning Resident?
As you can imagine, a number of documents will be required to clear your car smoothly once it arrives at the port of Mombasa. These documents include:
- Your original passport
- KRA PIN
- Vehicle import documents (bill of lading, inspection certificate and export certificate and commercial invoice)
- Proof of vehicle ownership for over 12 months in your country of residence (e.g. logbook)
- Proof of vehicle disposal such as sales agreement, vehicle transfer, payment receipts
- A letter to the commissioner of customs services requesting for duty waiver
After putting together the above documents and completing the required processes you will then liaise with a shipping line of your choice to ship the vehicle to your country. It is advisable that you contact them beforehand to get appropriate quotations, verify required documentation and understand the timelines.
What are the possible pitfalls?
At Croton Motors, we have successfully imported, cleared and delivered tens of duty-free imports on behalf of returning resident clients. As such, we are confident that the system works. That said, there are several pitfalls that must be noted even as you plan to import a vehicle into Kenya.
While KRA has given direction on the required documents, the particular inspector handling your car may request for more documentation at his discretion.
Similarly, KRA expects you to import a vehicle similar to the one you had in terms of make, model and engine size. It is possible that you do not find the same vehicle make and model as what you had in other markets. In this case, you will import a vehicle that is the closest in specs which might result in some haggling with KRA at the port of Mombasa.
