How METRIKA calculates this
Monthly cost = reducing-balance loan repayment on (price − deposit) + comprehensive insurance (annual % of car value ÷ 12) + your fuel, parking and service estimate.
The comfortable maximum price solves for the price at which the total equals 20% of your net income, keeping your deposit %, rate, term and running costs the same.
What to know in Kenya
Comprehensive motor insurance in Kenya is priced as a percentage of the car's value, commonly 3.5% to 7% depending on the insurer, car age and use. Most banks and SACCOs ask for a 10% to 30% deposit on asset finance, and older imports can have shorter maximum terms. Fuel is the running cost that moves most: check current EPRA pump prices for your town.
Frequently asked questions
How much of my salary should go to a car?
Keep all car costs, including insurance and fuel, under about 20% of take-home pay. Above 30%, most households struggle to save.
Is a bigger deposit worth it?
A bigger deposit lowers the repayment and total interest. It also cuts the risk of owing more than the car is worth if you sell early.
Should I choose a longer loan period?
Longer periods lower the monthly payment but raise the total interest. The car also keeps losing value while you are still paying for it.
What is the age limit for importing a used car into Kenya?
Imported used cars must be no more than eight years old from the year of first registration. Cars older than this are rejected at the port.
How much is import duty on a car in Kenya?
KRA charges 25% import duty, excise duty that depends on engine size and fuel type, 16% VAT, a 3.5% Import Declaration Fee and a 2% Railway Development Levy. They are worked out on KRA's valuation of the car, and together they can add a large share of its value, so get a duty estimate before you buy.
Are hybrid and electric cars cheaper to import into Kenya?
Hybrid and electric vehicles can qualify for lower excise duty than petrol cars of a similar size. Check the current rate for your model with KRA before you import.
Can foreigners buy and register a car in Kenya?
Yes. You need a KRA PIN, and ownership is registered with NTSA through the eCitizen portal, which issues the logbook in the owner's name.
How much is car insurance in Kenya?
Comprehensive cover is usually priced as a percentage of the car's value, commonly between 3.5% and 7% a year. Third-party cover is cheaper but doesn't pay for damage to your own car.
Is it cheaper to import a car or buy one locally?
Importing can be cheaper for recent models, but you pay duty, clearing, shipping and port charges and take on the risk of delays. Compare the landed cost with local prices for the same year and mileage.
Sources
- Central Bank of Kenya — Central Bank Rate
- Central Bank of Kenya — Monetary Policy Committee decisions
- Kenya Revenue Authority — What you need to know when importing a motor vehicle
- NTSA — National Transport and Safety Authority
- Kenya Revenue Authority — CRSP values for used motor vehicles
Links are for reference only. METRIKA is independent and not affiliated with or endorsed by these organisations.
Rates checked 6 Nov 2026. METRIKA gives estimates, not financial or tax advice.