Discover how new 2025 government regulations are impacting car imports in Kenya, including taxes, age limits, and import costs.

Kenya’s Car Import Landscape Is Changing

The Kenyan automotive market is undergoing a significant transformation. With new government regulations introduced in 2025, car importers, dealers, and buyers are facing a new set of rules that affect how vehicles enter the country—and how much they cost. For many Kenyans, imported second-hand cars are the most affordable option, but policy changes are shaking up this status quo.

In this article, we’ll explore how these new regulations are affecting the car import process, what it means for first-time buyers and seasoned dealers, and how to navigate the shifting landscape in 2025.

➡️ For a wider view of Kenya’s automotive trends, visit AutosKenya.com, your go-to site for car reviews, driving tips, and the latest news tailored to Kenyan motorists.

 Overview of New Car Import Regulations in Kenya (2025)

The Kenya Revenue Authority (KRA) and the Kenya Bureau of Standards (KEBS) have rolled out new rules aimed at:

  • Promoting local vehicle assembly

  • Reducing carbon emissions

  • Increasing government revenue through adjusted tax bands

Let’s break down the key changes:

1. Age Limit Enforcement Tightened

Kenya has long upheld an 8-year age limit for imported used vehicles. However, starting 2025, the government is enforcing this rule more strictly—no exceptions or extensions.

  • Cars must be manufactured in 2017 or later to be allowed for import in 2025.

  • Any vehicles older than this threshold are denied entry at the port.

2. Revised Import Duty and Excise Tax Bands

KRA has introduced a new taxation framework based on:

  • Engine capacity

  • Vehicle year of manufacture

  • CO₂ emissions levels

Engine Size Excise Tax Rate (2025) Below 1500cc 25% 1501–2500cc 35% Above 2500cc 40%

This means larger vehicles and older models now attract higher taxes—making them more expensive to import.

 Why the Government Introduced These Changes

Kenya's new automotive policy aligns with the National Automotive Policy (NAP) and Vision 2030 goals. The objectives are to:

  • Boost local assembly plants such as Mobius Motors and Associated Vehicle Assemblers (AVA)

  • Curb the importation of old, high-emission vehicles

  • Create employment in the automotive value chain

👉 As noted by Automag.co.ke, Kenya is positioning itself as a regional automotive hub.

How Importers and Buyers Are Being Affected

These new policies are reshaping buyer behavior and dealer strategies across the country.

1. Higher Prices on Used Cars

The stricter enforcement of the 8-year rule, combined with increased import taxes, has caused prices of imported cars to rise by 10–20% on average.

For instance:

  • A 2015 Toyota Fielder, which was once a popular option, is now ineligible for import.

  • A 2017 Toyota Fielder, which meets the current regulations, is up to KSh 300,000 more expensive than its older counterpart.

➡️ For affordable alternatives, check listings on Auto24.co.ke, which features locally used cars that comply with current regulations.

2. Decline in Older Car Availability

Many importers are cutting back on sourcing cars older than 2017. This limits choices for low-income earners who could previously afford 10- or 12-year-old vehicles.

Some popular models now harder to find:

  • Toyota Premio 2006–2012

  • Subaru Legacy 2010–2014

  • Honda Stream 2010–2013

3. Surge in Local Second-Hand Market

With imported units becoming costly or unavailable, many buyers are turning to the local second-hand market. Platforms like Auto24 Kenya have seen a surge in demand for:

  • Locally used Toyota Vitz, Passo, and Axio

  • Budget-friendly options like Nissan Note and Demio

If you're on a tight budget, exploring local listings might be the smarter move.

 Impact on Car Dealers and Import Businesses

Dealers, especially in Mombasa and Nairobi, are facing increased shipping delays, reduced profit margins, and the need to diversify inventory.

Key Challenges:

  • Increased costs due to higher CIF values

  • Tighter KEBS inspections at port

  • Reduced customer demand for pricier models

To adapt, many importers are shifting toward:

  • Newer, low-mileage cars

  • Hybrid and electric vehicles

  • Local sourcing partnerships

➡️ Discover how dealers are adjusting to these trends in our recent coverage on Kenya’s evolving car market.

 How These Changes Promote Eco-Friendly Motoring

One major goal of the regulations is to discourage the import of fuel-guzzling, high-emission vehicles.

Encouraged Options:

  • Hybrid cars like Toyota Prius, Honda Fit Hybrid

  • Smaller engine vehicles with low carbon footprints

These efforts are in line with Kenya’s commitments under the Paris Climate Agreement, aiming to reduce national emissions.

“We’re seeing a shift in demand toward hybrids, especially among Nairobi buyers concerned about fuel costs and taxes,” says an importer interviewed on Automag.co.ke.

Navigating the New Rules: Tips for Car Buyers in 2025

If you're looking to buy a car under these new rules, consider the following tips:

✅ 1. Go for 2017 Models and Above

Ensure the model year meets the legal requirement. Many dealers now label vehicles as "KEBS Approved" to help buyers filter their options.

✅ 2. Explore Local Car Listings

Check platforms like Auto24.co.ke for:

  • Locally used cars

  • Cars recently cleared from Mombasa port

  • Listings with full import documents

✅ 3. Consider Financing Options

With prices rising, auto financing and bank loans are becoming essential for buyers. Many dealerships now offer flexible payment plans.

What the Future Holds for Car Imports in Kenya

The government plans further reforms, including:

  • Introducing a CO₂ tax band to further discourage polluting vehicles

  • Incentives for electric and hybrid vehicle imports

  • Strengthening support for locally assembled vehicles

Kenyan motorists should expect continued price fluctuations, limited model availability, and more hybrid options entering the market.

 Conclusion: Adaptation Is Key for Buyers and Importers

The 2025 car import regulations are reshaping Kenya’s vehicle landscape. While the transition presents challenges—rising costs, limited older models—it also opens the door for smarter, cleaner, and more sustainable car ownership.

Whether you're an individual buyer or dealer, understanding these changes helps you make informed decisions in a fast-evolving market.

📣 Have you recently imported a car under the new rules? Share your experience with us in the comments on AutosKenya.com, or tag us on social media.

For more tips on buying under budget, explore:

  • Top Affordable Cars in Kenya (2025 Edition)

  • Driving Tips to Save Fuel in Nairobi