Excise duty is a large part of the cost of bringing a vehicle into Kenya, and the rates depend on the type of vehicle. The Excise Duty Act, as consolidated in mid-2026, sets different rates for ordinary cars, large engines, electric vehicles and motorcycles. If you worked out an import cost from older figures, check them against the bands below. This article sets out the rules and how excise fits into the total.

Cars and other motor vehicles

The First Schedule to the Act sets these rates for imported motor vehicles of tariff headings 87.02, 87.03 and 87.04:

Vehicle Excise rate
Imported vehicles of up to 1,500cc 20%
Imported vehicles above 1,500cc 25%
Petrol vehicles above 3,000cc and diesel vehicles above 2,500cc (tariff lines 8703.24.90 and 8703.33.90) 35%
100% electric vehicles 10%

Locally assembled vehicles, locally assembled electric vehicles and school buses for public schools are excluded from these rates. Excise is charged on the customs value plus import duty, not on the price you paid.

A common error is to think diesel cars up to 2,500cc pay the lower rate. They do not: any imported vehicle above 1,500cc is at 25 percent, and the 35 percent rate starts at 3,000cc for petrol and 2,500cc for diesel. The car import duty calculator applies the bands.

Motorcycles

Imported motorcycles of tariff 87.11 pay a fixed excise of KES 12,952.83 per unit, instead of a percentage. Motorcycle ambulances, locally assembled motorcycles and electric motorcycles are excluded. Because the schedule is adjusted for inflation each 1 October, KRA may charge a slightly higher amount than the figure in the printed Act. VAT is then charged on the customs value plus duty plus excise. The motorcycle import duty calculator includes the excise amount, and importing a motorcycle: duty and costs walks through a full example.

How excise fits into the bill

The order of the charges on a car is:

  1. Customs value: the CRSP-based value after depreciation for age. See how much it costs to import a car.
  2. Import duty on the customs value.
  3. Excise duty on customs value plus import duty.
  4. VAT at 16% on customs value plus duty plus excise.
  5. IDF and RDL on the customs value.

Because VAT is charged on the excise-inclusive total, a higher excise rate raises VAT too. For a car with a customs value of KES 1,400,000 and duty of 35 percent, the excise at 20 percent is KES 378,000 and at 25 percent is KES 472,500. The difference of KES 94,500 before VAT is why engine size matters so much.

Used cars and depreciation

The customs value of a used car is the CRSP less a depreciation allowance that rises with age, so older cars attract lower duty, excise and VAT, although they may fail age limits. Read importing a used car: inspection and registration and use the car age checker before you buy.

Other excise changes in the schedule

The same schedule also lists excise on excisable services: telephone and data services at 15 percent, money transfer fees at 15 percent, other fees charged by financial institutions at 20 percent and betting, gaming and lotteries at 5 percent. These are covered in excise duty on airtime, money transfers and bank fees.

Planning tips

  • Compare two similar vehicles at 1,500cc and 1,800cc: excise and VAT can differ by hundreds of thousands.
  • Check the fuel type, since diesel thresholds are lower than petrol at the top band.
  • Consider electric models if they suit your use, because the 10 percent rate applies and other incentives may exist.
  • Ask for a quote using the customs value from KRA's CRSP list, not the invoice price.
  • Remember registration, insurance and agent fees: excise duty on imports and vehicles.

Check the date

Excise rates are amended by Finance Acts. The figures above reflect the Act as consolidated to July 2026. If you are importing later, confirm the current rates with KRA or your clearing agent.

Work out the whole import bill with the import duty and landed cost workbook, and read customs valuation explained and IDF and RDL explained for the other charges that sit beside excise.

Frequently asked questions

Is excise charged on the price I paid? No. It is charged on the customs value plus import duty, which uses the CRSP and depreciation rules for used vehicles.

Do hybrids count as electric? The 10 percent rate is for 100 percent electric vehicles. Hybrids are charged under the ordinary engine-size bands.

Why is the motorcycle excise a fixed amount? The Act sets it per unit rather than as a percentage. The amount is indexed to inflation each year.

Can I claim excise back? No. Excise on a vehicle is a cost to the owner, and VAT on cars is generally not recoverable unless the car is stock for sale.