Buying a used car from abroad can save money, but the process has many steps and every one costs something. Following them in order and checking the numbers at the start avoids the most common regrets.

Step 1: check the age rule

Kenya limits the age of imported used vehicles, normally to eight years from the year of manufacture. A car that is too old cannot be registered. The car age checker tells you whether a car is eligible and when it stops being so.

Step 2: check the price against the CRSP

KRA values imported cars using the Current Retail Selling Price (CRSP) for the make and model, less a depreciation allowance for age, and uses the higher of that and the invoice. Look up the CRSP before you agree a price. See how much it costs to import a car for the taxes and fees.

Step 3: work out the total cost

Run the numbers in the car import duty calculator: import duty, excise duty by engine size, VAT, the declaration fee and the levy; see excise duty on imports and vehicles and IDF and RDL explained. Add shipping, insurance, the agent's fee, port charges and registration. Decide whether the car is still worth buying.

Step 4: pre-shipment inspection

Used vehicles must usually be inspected before shipment by an approved inspection company in the country of export, which issues a certificate. The certificate checks the vehicle's identity, age and condition against Kenya's standards. A car without a valid certificate may be refused. Ask your agent which company and certificate are currently required.

Step 5: buy and ship

Pay the seller safely, ideally with a written invoice that matches the car's details. Shipping is usually by a roll-on roll-off ship or in a container; compare quotes and understand who is responsible for insurance and risk; see Incoterms explained for importers.

Step 6: clearance

A clearing agent files the customs entry, pays the duty and taxes, arranges inspection and releases the car; see clearing agent or clear it yourself and the import documents checklist. Have the money ready, because storage charges grow each day.

Step 7: register and get plates

After clearance, the car is registered with the transport authority, which issues the logbook and number plates. You will need your ID and KRA PIN, the customs documents, the inspection certificate and proof of the duty paid. Make sure that the registration is in your name and that the car's details match the documents.

Step 8: insure and service

Insure the car before you drive it, and have it serviced. A fleet fuel and maintenance tracker records fuel and servicing and shows what the car really costs to run.

Business use

If the car is for your business, the purchase is a capital asset that earns capital allowances rather than an immediate deduction; see fixed assets and capital allowances. Record it in the fixed asset register. Budget the purchase and any loan with the loan affordability checker and schedule.

Beware of scams

Do not pay a seller you cannot verify, and never pay duty to a personal account. Duty is paid through the customs system.

Rules and fees change. Confirm each step with KRA, the transport authority and a licensed clearing agent.

Common questions

Is the CRSP the price I will pay duty on? The duty is worked out on the customs value, which starts from KRA's Current Retail Selling Price list and is reduced by a depreciation allowance for the car's age. The price you paid abroad is not the basis.

What happens after the car is cleared? You pay duty, excise, VAT and fees, collect the car, register it with NTSA, arrange insurance and get number plates. Keep the entry and receipts, because you will need them for registration.

Which cars cannot be imported? Vehicles above the maximum age from the year of manufacture cannot be cleared for general use, and cars that fail the pre-shipment inspection may be rejected. Check the age limit before you buy.