The Kenya Revenue Authority (KRA) has unveiled draft amendments to the Tax Procedures Act, targeting the importation of unassembled motor vehicles, trailers, and motorcycles. These proposals, released on 6th February 2025, aim to bolster local assembly and manufacturing industries.
The proposed regulations, titled the Tax Procedures (Unassembled Motor Vehicles and Trailers) (Amendment) Regulations, 2024, and the Tax Procedures (Unassembled Motorcycles) (Amendment) Regulations, 2024, seek to amend existing frameworks governing the importation of Completely Knocked Down (CKD) kits.
CKD kits are vehicles and motorcycles imported in parts for local assembly.
A key highlight of the amendments is the revision of the definition of "unassembled motor vehicles and trailers." The new definition specifies that these are vehicles and trailers "imported in completely knocked down form for purposes of assembly in Kenya." Cars at Mombasa Ferry Photo Mombasa Ferry This clarification aims to ensure that only genuine CKD units benefit from tax incentives designed to promote local assembly.
