Kenyans Warned of Fraudsters Charging Registration Fees for Vehicle Auctions

Kenya Revenue Authority (KRA) has warned Kenyans against fraudsters charging registration fees for vehicle auctions.

In a statement on Friday, February 7, the taxman cautioned the public after a notice went viral on social media announcing that there will be a vehicle auction happening on February 14, 2025.

“Beware of fraudsters! KRA does not charge any registration fee for vehicle auctions. Stay safe, stay informed,” the statement read.

Further, KRA has informed the public, that fraudsters are asking for car buyers to make payments upfront.

KRA Issues Warning

In the fake notice, members of the public were advised to pay a registration fee of 20,000 Kenyan shillings upfront before the auctioning. 

“Don’t miss the chance to bid on a wide range of vehicles at unbeatable prices,” the fake notice said.

KRA revealed to the public that they do not charge any fee for registrations during vehicle auctions.

Additionally, for verification, members of the public have been advised to visit KRA platforms where details of auctioning can be accessed.

Further, the statement alerted the public, to stay safe and be informed on the rise of vehicle auction fraudsters.

What is Vehicle Auctioning?

A customs auction is the sale of vehicles to the highest bidder. According to KRA, it involves disposing of vehicles not lawfully removed from the Customs Warehouse after a certain period.

Section 42 of the East Africa Community Customs Management Act, 2004 authorizes the Customs Warehouse keeper to sell any goods deposited in the Customs Warehouse after several procedures.

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KRA Auctioning Procedure

According to KRA auction procedures, Section 42 of the EACCMA, 2004 provides the Customs Warehouse keeper the sale of any goods that are not lawfully removed from the Warehouse after thirty (30) days of deposit.

This will pave the way for the Commissioner to issue a publication of a Gazette notice of the Partner State or newspaper for wide circulation.

Goods will be deemed abandoned if they are not lawfully removed from the warehouse within thirty days from the date of the notice.

Further, the gazette notice shall state the date when prospective bidders will view the goods and the actual date of the auction.

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Customs together with the other partner government agencies will verify the goods to determine the reserve price and if the goods meet the required standard and quality.

Both the Commissioner and Customs and Boarder Control will then approve the prices for the auction.

Later, the Commissioner will appoint an Auctioneer who will then conduct the auction process under the guidelines outlined in Regulation 207 of East African Community Customs Management Regulations.

Finally, the process will allow the successful bidder to pay a non-refundable deposit of 25% of the bid price at the fall of the hammer and a balance of 75% payable within 48 hours.

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