In the car import business, using the wrong acronym can bankrupt you. We often see buyers calculate their budget based on the "CIF Price," only to be shocked when the tax bill arrives.

If you are importing a car, you need to speak the language of logistics. Here is the definitive glossary of the three prices you will encounter.

1. FOB (Free On Board)

"The Japan Price."

This is the cost of the car before it leaves Japan. It includes the Auction Price plus the Agent's Fee (Transport, Deregistration, Yard fees).

  • Who you pay: The Japanese Exporter.
  • What you get: The car is delivered to the Japanese port (e.g., Yokohama or Nagoya) and is ready to load.
  • Does it include shipping? NO.

2. C&F / CIF (Cost, Insurance, Freight)

"The Port Price."

This is the FOB Price plus the cost of Ocean Shipping (Freight) and Marine Insurance.

  • Who you pay: The Japanese Exporter (usually).
  • What you get: The car arrives at the Port of Mombasa.
  • The Danger: Many buyers think this is the final price. It is not. This is just the price to get the car onto Kenyan soil. You still haven't paid the government.
⚠️ The "C&F" vs "CIF" Trap

Some cheap exporters quote C&F (Cost & Freight) to look cheaper. This means Marine Insurance is missing.

If the ship sinks, you lose everything. Always insist on CIF (Insurance included). KRA also requires proof of insurance for tax calculation.

3. Landed Cost (The Real Price)

"The Key-in-Hand Price."

This is the CIF Price plus ALL Kenyan Taxes, Port Charges, and Clearing Fees.

  • The Formula: CIF + Import Duty + Excise Duty + VAT + IDF + RDL + Port Charges + Agent Fee + Registration.
  • The Multiplier: In 2025, with the new tax rates, the Landed Cost is roughly 2.0x to 2.2x the CIF price for most cars.
  • Example: If a Harrier is $10,000 CIF, the Landed Cost will be approx $22,000.

The Price Waterfall

Stage Components Payable To
FOB Car Cost + Japan Logistics Japan Exporter
CIF FOB + Shipping + Insurance Japan Exporter
LANDED CIF + Taxes + Port Fees KRA / Clearing Agent

Summary

  • Never budget based on CIF. It is only half the story.
  • Verify Insurance: Ensure your invoice says "CIF," not "C&F."
  • The Golden Rule: If a dealer quotes a price that sounds too good to be true, they are probably quoting CIF, not Landed.