The taxman has stepped up the war against a the multi-million car importation racket that has for many years helped unscrupulous motor dealers evade payment of taxes.
In their latest move, the Kenya Revenue Authority (KRA) has revealed that those using vehicles bearing foreign registration number plates would have to prove they worked in the countries of origin and submit work permits or proof of residency.
The tax man says that individuals without these documents will not be allowed entry into or to locally operate a foreign registered motor vehicle, and any such vehicle operated without the above will be impounded.
Even with all the documents, the car owners will have to apply for a foreign motor vehicle permit, which will be done online via the eCitizen portal.
Applicants will need the Form C32 or an endorsed international circulation permit from the country of origin as well as Comesa insurance.
Foreigners from the East African Community (EAC) and Common Market of East and Southern Africa (Comesa) have not been spared and will have to provide proof of ownership and if they are an agent of the owner, have power of attorney from them.
Diplomats will also have to prove their diplomatic status in addition to proving they work in a diplomatic capacity.
“Prior to gaining entry approval, the foreign operator from EAC and Comesa countries must have a valid temporary importation of road vehicles form (Form C32) which is issued at a border station,” said KRA and National Transport Safety Authority in a joint statement yesterday.
Some Kenyans have been using foreign registered vehicles, especially from the neighbouring countries , considering they are cheaper, with some allowing older vehicles into their markets.
While Kenya currently only allows importation of vehicles up to eight years, Tanzania allows imports of cars as old as 10 years and only recently did Uganda pass a law limiting importation of vehicles manufactured more than 15 years ago. Burundi, Rwanda and South Sudan, on the other hand, have no formal age limits for used cars.
EAC member states are racing against time to finalise talks on proposals to lower the age limit for imported used cars by 2021.
Kenya has already announced plans to limit the age of used vehicles with engine capacity above 1500cc imported to five instead of the current eight years.