How Car Prices Will Increase in the Latest KRA Directive to Importers

The Car Importers Association of Kenya (CIAK) has warned that the prices of vehicles could increase due to the latest KRA directive, which requires importers to obtain a Certificate of Origin for imports.

According to the association, the new requirement will cost importers Ksh28,000 per vehicle.

Using the data on car imports in 2024 of 72,486 imported units, the importers are set to spend approximately Ksh2 billion each year for the certificates.

As a result, these extra costs will be passed down to consumers.

“In 2024, between January and December, Kenya imported 72,486 units with each required to pay Ksh28,000 for the CO if it is introduced, which would result to export of more than Ksh2,029,608,000 which should not be spent while there are such documents to verify vehicle’s origin since no unit can be cleared in different border points without such documents,” CIAK stated.

CIAK chairman Peter Otieno explained that the requirement for vehicles was unnecessary given that the documents used in the ports already detail the origin of the car. In Kenya most of the cars are imported from Japan.

“In our own opinion, the Country of Origin should be on the logbook and the inspection certificates, but we should not spend the said amount of money while we have the quoted documents.

"It is therefore our humble appeal that this requirement should not apply to motor vehicles at all,” the chairperson wrote in a letter to the Commissioner of Customs and Border Control, Lilian Nyawanda.

In June, KRA announced that it was introducing the requirement for all imports to have a Certificate of Origin. In the notice, KRA detailed that the directive was mandatory.

The Certificates of Origin must include the name and address of both the importer and the exporter, the port of origin, and an accurate description of the goods.

The certificates also need to detail the quantity of the goods, the country of origin, and the destination.

While the new directive took effect on July 1, 2025, importers were given a leeway window up to September 30, before the directive is fully implemented.

"It is mandatory for all consignments imported into Kenya to be accompanied by a Certificate of Origin (CoO) issued by a competent authority from the country of export, effective 1st July, 2025. This marks a radical shift from prior practice, where CoOs were required only for goods under preferential trade arrangements to determine origin and confer tariff benefits.

"A competent Authority refers to a government Agency or officially designated body in the exporting country that is authorized to issue certificates of origin," read the statement in part.