The Kenya Revenue Authority (KRA) has overhauled the clearance process for imported second-hand motor vehicles following a presidential directive aimed at easing logistical bottlenecks for car dealers across the country.
Under the revised framework, vehicles imported by licensed dealers can now be released from customs-controlled facilities upon the payment of all applicable customs duties, taxes, and levies, pending the formal completion of the vehicle registration process.
Separating customs clearance from final registration
Previously, car importers and licensed dealers faced extended storage and demurrage delays because full vehicle registration, including the processing of National Transport and Safety Authority (NTSA) numbers and fees, had to run concurrently with customs clearance before any vehicle could leave port facilities or container freight stations (CFSs).
The new arrangement officially separates customs clearance from final registration. Under the updated guidelines:
- Dealers and importers are still required to settle all applicable statutory obligations, including import duty, excise duty, Value Added Tax (VAT), Import Declaration Fees (IDF), and the Railway Development Levy (RDL).
- NTSA registration fees and levies are no longer collected during the initial customs entry stage. These are deferred until the vehicle is eventually sold to a retail buyer.
- Once customs verification officers inspect the vehicles and confirm payment, the Centralised Release Officer authorises the release of the units, allowing dealers to transfer them directly to their display yards.
Special identifiers and automated tracking
To maintain regulatory oversight and security under the new process, NTSA will issue a unique identifier combining a Kenya Dealer (KD) number and the vehicle’s specific chassis number.
This identifier is integrated directly into KRA’s customs management system (iCMS) via an automated application programming interface (API). Border control and customs verification officers cross-reference these digital logs against the physical details on the vehicle before authorising release, ensuring seamless data reconciliation and a dependable audit trail.
Once a dealer secures a buyer, the final registration process is completed, transmitting the newly assigned Kenyan registration number back through the automated system.
What this means for dealers and buyers
Industry stakeholders have welcomed the policy shift, noting that it reduces port congestion and lowers holding costs for automotive businesses.
For prospective car buyers, experts advise verifying that a vehicle has successfully cleared customs and checking its documentation details, such as chassis numbers and dealer licensing status, before purchasing units bearing temporary dealer identifiers.
Despite the streamlined clearance process, KRA emphasised that all other statutory requirements remain fully in force. Imported second-hand vehicles must still strictly comply with Kenya’s eight-year age restriction rule, right-hand drive regulations, and pre-shipment roadworthiness standards set by the Kenya Bureau of Standards (KEBS).
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