Kenyan enthusiasts of luxury vehicles may face increased costs if a new tax measure included in the Finance Bill 2026 is enacted.
The legislation, released by the National Treasury on Thursday, April 30, imposes a 50 per cent excise duty on premium classic cars, while the government seeks additional revenue from affluent car enthusiasts.
According to the Bill, antique, vintage or classic automobiles that are at least 30 years old and valued at a minimum of Ksh10 million will now be subject to a 50 per cent excise duty.
“Antique, vintage and classic vehicles, 50 per cent of the excisable value,” states a section of the Finance Bill 2026.
“Antique, vintage or classic vehicle means a motor vehicle whose year of first registration is at least 30 years before the date of purchase of the motor vehicle and whose value is at least Ksh10 million, exclusive of depreciation.”
The measure affects collectors and vehicle dealers who import or trade in rare and high-value automobiles.
Under this new proposal, President William Ruto’s administration aims to double the tax on premium vehicles, a change that is likely to impact purchases in this vehicle category.
The classic car tax represents one of numerous provisions in the Finance Bill 2026, which proposes amendments across multiple tax areas, including income tax, Value Added Tax (VAT), and excise duty.
If Parliament passes the Bill and the president gives assent, the new taxes will be implemented gradually, with most provisions effective from July 1, 2026.
This marks the first instance of such a tax proposal. Two years prior, the government introduced the motor vehicle circulation tax in the Finance Bill, 2024.
The proposed tax rate was based on the car’s value, with the tax not below Ksh5,000 and above Ksh100,000, payable when acquiring an insurance policy.
However, the proposal was withdrawn after President Ruto announced the cancellation of the 2024 Finance Bill following nationwide youth protests.