When you import goods from China into Kenya, the price you pay the supplier is only part of the story. Customs adds import duty, VAT, an Import Declaration Fee and a railway development levy on top — and knowing these up front is the difference between a profitable order and a loss.
- Import duty is commonly 0%, 10%, 25% or 35% depending on the product category.
- VAT in Kenya is 16% and is charged on the customs value plus duty.
- The Import Declaration Fee (IDF) and Railway Development Levy are small percentage charges.
- Always estimate your full landed cost before you commit to an order.
The charges you will meet
Kenyan import charges stack on top of each other, so the order matters. Customs first works out the customs value of your goods, then applies each charge in turn. The main ones are:
- Import duty — set by the product's tariff code, commonly 0%, 10%, 25% or 35%.
- VAT — 16%, charged on the customs value plus the import duty.
- Import Declaration Fee (IDF) — a small percentage of the customs value.
- Railway Development Levy (RDL) — another small percentage of the customs value.
Because VAT is calculated after duty is added, a higher-duty product is taxed twice over in effect — once by the duty and again by the VAT applied on top of it.
One detail trips up almost every new importer: the customs value is not just the price you paid the supplier. It is the value of the goods plus the cost of freight and insurance to get them to Kenya. So the cheaper your goods relative to shipping, the larger the share of your taxes that is effectively being charged on transport. This is why two orders with the same supplier price can attract very different total charges depending on how they were shipped.
A worked example
Suppose your goods have a customs value of 100,000 KES and fall in the 25% duty band. A simplified estimate looks like this:
| Charge | Basis | Amount (KES) |
|---|---|---|
| Customs value | Goods + freight + insurance | 100,000 |
| Import duty (25%) | On customs value | 25,000 |
| VAT (16%) | On value + duty (125,000) | 20,000 |
| IDF + RDL | Small % of customs value | About 5,000 |
| Total taxes | About 50,000 |
In this example the taxes add roughly 50% on top of the customs value. The exact figures depend on your tariff code and current rates, so confirm with a clearing agent before you order.
How to avoid nasty surprises
Most landed-cost shocks come from guessing the tariff code or forgetting that VAT applies after duty. To protect your margin:
- 1Find your product's correct HS (tariff) code before ordering.
- 2Estimate duty + VAT + IDF + RDL on the full customs value.
- 3Add freight and clearing fees to get your true landed cost.
- 4Only then compare against your selling price to confirm the margin.
Frequently asked questions
What is the VAT rate on imports into Kenya?
The standard VAT rate is 16%, and it is charged on the customs value plus import duty — not on the goods price alone.
How do I know my import duty rate?
It depends on the product's HS (tariff) code. Common bands are 0%, 10%, 25% and 35%. A clearing agent or the KRA tariff can confirm your specific code.
What is the IDF?
The Import Declaration Fee is a charge levied as a small percentage of the customs value when you declare imported goods. The Railway Development Levy is a separate, similar charge.
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