Starting a Car Import Business in Kenya
If you’ve ever considered diving into the world of international trade, starting a Car Import Business in Kenya can be a smart and profitable venture. With a steadily growing demand for affordable, quality vehicles and the increasing trust in imported cars, this sector offers excellent potential for entrepreneurs who are ready to invest time, capital, and effort.
Kenya’s automotive market is dynamic and fast-evolving, making it one of the top destinations in East Africa for imported vehicles.
Whether you’re looking to bring in used cars from Japan or high-end vehicles from the UK, establishing a foothold in the Car Import Business in Kenya can position you for long-term growth.
In this blog, we’ll walk you through everything you need to know to get started, build trust with your clients, and grow a thriving business.
Is the Car Import Business in Kenya a Lucrative venture?
Demand for cars in Kenya has surged over the past decade. Middle-class expansion, urbanisation, and better road infrastructure have all contributed to this growth. Many Kenyans prefer imported vehicles due to their better condition and lower prices compared to locally sold new cars. This makes the Car Import Business in Kenya highly attractive for new players who can deliver reliability, transparency, and affordability.
Guide to Starting Your Car Import Business in Kenya
1. Conduct Market Research
Before making any commitment, research the Kenyan automotive market. Identify the most popular car models, understand consumer preferences, and assess your competition. Determine which countries offer the best deals on vehicles and which ports are most efficient for importation.
2. Register Your Business
You need to formalise your business by registering with the Registrar of Companies in Kenya. Choose a business name and decide whether to operate as a sole proprietor, partnership, or limited company. A limited liability company offers protection and credibility.
Additionally, you will need:
- A KRA PIN (Kenya Revenue Authority Personal Identification Number)
- An ETR machine for tax compliance
- Licensing from the relevant local authorities
3. Obtain an Import License
You must obtain an import license to legally import vehicles into the country. This involves:
- Registering with the Kenya National Chamber of Commerce and Industry (KNCCI)
- Getting approval from the Kenya Bureau of Standards (KEBS)
- Enlisting as an importer with the Kenya Revenue Authority (KRA)
4. Identify and Partner with Reliable Suppliers Abroad
For your Car Import Business in Kenya to succeed, build strong relationships with trusted international car dealers. Popular sourcing countries include Japan, the UK, the UAE, and South Africa. Always verify the authenticity of the supplier and ensure they provide detailed vehicle histories.
5. Choose a Clearing and Forwarding Agent
Your agent plays a critical role in ensuring that your vehicles are cleared quickly and legally at the port. They handle documentation, customs duties, and logistics. Choose someone experienced in car importation with a good track record.
6. Set Up Storage and Display Facilities
You’ll need a secure yard or showroom where clients can view the imported cars. Ensure the location is accessible and in a high-traffic area to attract walk-in customers. Invest in branding to build trust and recognition.
7. Market Your Business
Digital marketing is a powerful tool for attracting customers. Create a professional website showcasing your available cars, prices, and contact details. Use social media platforms like Facebook, Instagram, and YouTube to highlight new arrivals and satisfied customers. Invest in Google Ads and SEO to make sure your Car Import Business in Kenya is discoverable online.
8. Provide Exceptional Customer Service
Transparency and integrity will set your business apart. Clearly communicate timelines, import processes, and any fees involved. Always provide accurate vehicle histories and support your clients through every step of the process.
Cost of import duty on cars in Kenya
The import duty on cars in Kenya is calculated based on the Customs Value of the vehicle. Here’s a general breakdown:
- Import Duty: 25%
- Excise Duty: Varies (20% for vehicles under 1500cc, 25% for those above)
- VAT: 16%
- Railway Development Levy: 1.5%
- Import Declaration Fee: 2%
These percentages are calculated on the vehicle’s Customs Value, which is based on the Current Retail Selling Price (CRSP) and adjusted for depreciation.
How to import a car in Kenya
Here is a simplified process:
1. Identify and purchase the car from a verified supplier abroad.
2. Ensure the car complies with KEBS standards (less than 8 years old and Right-Hand Drive).
3. Obtain the relevant documents: Invoice, Export Certificate, Inspection Certificate, and Bill of Lading.
4. Ship the car to the Port of Mombasa.
5. Hire a clearing and forwarding agent to handle customs clearance.
6. Pay all necessary duties and taxes.
7. Register the vehicle with NTSA and obtain a Kenyan number plate.
How old should a car be to import to Kenya?
The car must not be more than 8 years old from the year of first registration. Additionally, Kenya only allows Right-Hand Drive (RHD) vehicles for importation.
Is it cheaper to import a car in Kenya?
Yes, in many cases. Imported cars are often more affordable and in better condition than locally available new vehicles. You also have a wider selection of brands and models. However, it’s crucial to work with trusted suppliers and clearing agents to avoid hidden costs and delays.
Conclusion
If you’re ready to start a Car Import Business in Kenya, don’t go it alone. Partner with us today and tap into a powerful network of mentors, resources, and business opportunities. From company registration to space sourcing, Afrilink Consultants handles your paperwork in real-time support.
📩 clientservice@afrilinkconsultants.com
📞 +254707280366
