KRA issues new rules for importing duty-free cars

The Kenya Revenue Authority (KRA) has outlined several policies that will apply to the importation of goods by people returning home to Kenya after living abroad.

In a circular dated January 23, 2024, the KRA said the aim is to ensure returning residents are well-informed about customs procedures while planning to travel back home.

The policies apply to residents who have lived outside Kenya for at least 12 months, and who are at least 18 years old.

For duty-free items, they are allowed to import any vehicle, except a bus or minibus with a capacity for 13 passengers, and commercial vehicles weighing two tonnes and above.

"Returning residents are allowed to import personal and household goods including one motor vehicle on a duty-free basis. This means they do not pay any importation taxes. However, certain conditions must be met. They must have proof of living abroad and their goods must be imported within three months of arrival. However, the KRA commissioner can grant an extension of up to one year," the taxman said.

In addition, the vehicle should not be older than eight years and the owner must have used it outside the country for at least 12 months. Further, it must be registered under the owner's name, and the location of purchase if on hire purchase terms.  The first instalment must have been paid and the delivery must have taken place at least 12 months before importation.

"Items that may be exempted when imported as baggage by a returning resident include apparel, and personal and household effects which were in personal or household use in former residences," the authority added.

It also said that residents must not have been granted similar exemptions in the past.

LHD vs RHD

A returning resident who operates a left-hand drive (LHD) vehicle is allowed to import a replacement right-hand drive (RHD) vehicle from any other source. However, the replacement vehicle's current retail selling price should not exceed that of the previously owned LHD car.

"The returning resident must show proof that they owned and personally used the left-hand drive vehicle in the country of former residence for at least one year, before their return," the KRA noted.

In addition, they must provide proof of disposal (transfer of ownership) of the previously owned vehicle before changing residence.

Non-Kenyans must have a foreign vehicle registration book under their names and have the owners' authorisation to operate them, in case the operator is an agent of the owner. They must also provide foreign identification and proof of residency in the foreign country.

"Before gaining entry approval, a foreign operator from countries outside the EAC or COMESA must have a valid International Circulation Permit [Form C32] from their country of origin," the authority added.

In addition, an operator of a foreign vehicle must apply for a foreign permit.

The KRA noted that individuals without the required documents will not be allowed entry into the country or to locally operate foreign-registered vehicles.

"Any such vehicle operated will be impounded," it said.