Can I Sell My Duty-Free Car?

Yes, you can sell your duty-free car in Kenya. However, you will be required to pay the relevant taxes to the Kenya Revenue Authority (KRA) before transferring ownership to the new buyer. The taxes can be paid by yourself (the seller) or by the buyer depending on the agreement reached.

In some cases, it is possible to sell your duty-free vehicle directly to a buyer who also has duty-free privileges. This type of sale has to meet certain strict requirements, which will be covered in a different article.

Going back to selling your duty- free vehicle to a duty paying buyer- there are several processes that must take place for such as sale to be completed and to ensure compliance. Here is a breakdown:

Steps to Sell Your Duty-Free Vehicle

1. Identify a Buyer

   The first step to selling your duty-free vehicle in Kenya is to find a buyer for it. Perhaps the most common method of finding a buyer is by advertising at your organization’s notice boards or sharing the information with friends and family. Other options are vehicle market places such as Jiji, Car Bazaars or social media. You may also opt to work with a vehicle dealership such as Croton Motors Ltd to widen your chances of making sale.

2. Prepare Paperwork

   Once you have a buyer, the next step is to get the required paperwork in order. The documents you need to prepare are:

   • Pro 1C - Authority document to dispose of a duty-free vehicle (obtain via protocol office)
   • Initial KRA duty entry (Form C17)
   • Importation documents (Bill of Lading, export certificate, QISJ inspection certificate)
   • Vehicle logbook
   • Utilized duty exemption proof (Pro 1B)
   • Your identification documents (ID/Passport and KRA PIN)
   • Buyer’s identification (ID/Passport and KRA PIN)

3. Obtain Necessary Approvals

   The next step will be to obtain the necessary approvals to sell your car from the Ministry of foreign affairs through your protocol office. This is done by surrendering the vehicle’s physical registration plates together with a letter stating your intention to sell the vehicle (surrender letter) to NTSA. The NTSA will stamp this letter which will now form part of the documentation required to complete the process. Together with this letter your protocol officer will submit copies of your diplomatic ID, vehicle logbook, original importation documents and the tax exemption (Pro 1B) to the Ministry of Foreign Affairs. Once approved, you get the Pro 1C authority to sell document.

4. Assessment of Payable Taxes

   Using the vehicle logbook and original entry (form C17), a licensed clearing agent will be able to generate a new entry from the KRA ICMS system which shows the taxes payable for the vehicle. These taxes must be paid to KRA and the payment receipt obtained.

5. KRA Verification

   TAfter taxes are paid to KRA, the next step is to take the vehicle for verification by a customs officer at KRA stations such as Times Tower or JKIA. An officer will verify the vehicle’s particulars and documentation as well as taxes paid.

6. Approval

   Once verification is done successfully, the clearing agent will now seek approval from the KRA enforcement department. The enforcement department will refer the documentation to valuation office for further confirmation of taxes paid. They will either approve or in the case that taxes paid are insufficient, request for a top up.

7. Vehicle Transfer

   With this approval you can now transfer your vehicle to the new buyer on the NTSA e-citizen platform. After the transfer, the buyer must also log into their account and ‘accept ownership’. If the transaction is in order NTSA will approve it and print a logbook in the new buyer’s name. at this point NTSA will also allocate and issue a Kenyan number plate.

Important Notes

• Duty assessment- It is important that you confirm the taxes payable for your vehicle right from the beginning, as this will help you determine the selling price. You can then sell it inclusive or exclusive of taxes.
• Allow ample time for the transaction – The sale and transfer process of a duty- free vehicle is lengthy and can take anywhere from 6-8 weeks. It is important to plan ahead, particularly if you are leaving the country