Kenya car dealers face customs duty bill and delayed registration rule

A Kenyan motor dealer, D. T. Dobie, was ordered by the Tax Appeals Tribunal to pay about Sh1.1 billion in customs duty for semi‑knocked down vehicle kits imported under a 2016 government programme. The tribunal found that a promised Treasury exemption was never codified, leaving the importer liable for the tax.

Separately, Kenya’s High Court barred the National Transport and Safety Authority (NTSA) from impounding unregistered imported vehicles held by used‑car dealers without first giving a fresh 60‑day notice. The court upheld the legal requirement that vehicles be registered before sale but ruled the NTSA’s previous seven‑day deadline unfair. The decision follows a petition by the Car Importers Association of Kenya (CIAK) challenging the NTSA’s December 2024 directive.

Both rulings highlight ongoing disputes over customs obligations and vehicle registration enforcement affecting Kenya’s automotive import sector.