Legal Documents To Have When Buying A Car In Kenya
“When the time came for me to buy a car, I was a bit hesitant because of all the horror stories I’ve heard about rogue car dealers. Buyers who got swindled out of their money, those buyers who thought they were getting a good deal but instead ended up with a piece of junk they… View Article
“When the time came for me to buy a car, I was a bit hesitant because of all the horror stories I’ve heard about rogue car dealers. Buyers who got swindled out of their money, those buyers who thought they were getting a good deal but instead ended up with a piece of junk they had to spend a fortune on repairs for, name it. When you’re buying your first car, especially a locally used car, such stories make you nervous considering how big investment cars are. It doesn’t matter whether you’re spending 700k or 10 million on a car,” Jacky, a Peach Cars client, told us when we asked her about her experience buying a car for the very first time.
Like Jacky, many first-time car buyers find the process quite intimidating and unsettling. You don’t know what to do, what you need to have, and how to go about it. The worst part of it all? Everyone around you suddenly becomes a car-buying expert.
“This is what you should buy as your first car.”
“I know someone at NTSA who can help you out at a small fee. You’ll have your logbook within hours.”
“My uncle’s neighbor bought a car last year but one. This is how he went about it…”
Bla bla bla.
But how about you get REAL expert advice from people who were born to sell cars? People who’ve handled hundreds of car ownership transfers for clients, a majority who were happy with the experience. In this article, Mercy Nekesa, the Peach Car Sales Admin, will take you through the legal documents you need to have when buying a car in Kenya.
Let’s dive right into it.
What Documents Are Required to Own a Car in Kenya?
When buying a car in Kenya, you’ll be required to have certain documents. Some of the documents are a requirement by authorities such as KRA and NTSA while others will protect you from losing your money (and car).
There are several documents and checklists for buying a locally used car in Kenya. Some of the most important ones include;
1. Your identification card and KRA PIN
You should have a national ID card or passport when buying a car. This is what will be used to register the vehicle to your name and you can easily prove it belongs to you when required. You’re also required to have a KRA PIN in case there are any taxes, such as import duty if it’s a foreign-used car, to be paid on the vehicle.
If you’re a foreigner, you should have your alien ID and passport. This guide will help you to buy a car in Kenya as a foreigner.
2. Seller’s identification document and KRA PIN
When buying a car, you should be sure the seller is the genuine owner (or at least authorized by the owner to sell it). You can do this by conducting a motor vehicle search on the NTSA TIMS portal.
The NTSA motor vehicle search will provide you with a copy of records that will enable you to confirm with the seller’s documents before purchase. It contains the following information;
- Make and model of the vehicle
- Year of manufacture
- Body type
- Chassis number
- Engine number
- Name and address of the owner
- Caveats (if any)
The service costs Kshs.550. So ensure you have that amount of money on your Mpesa, Airtel Money, or Visa cards before initiating the process.
3. The car’s logbook
Ask the seller to provide a copy of the car’s logbook and check if the engine and chassis number match the details obtained from your NTSA TIMS car search. Remember you’ll be required to surrender the original old logbook when collecting the new one after the car has been transferred to you.
You should also verify that the details on the logbook match the seller’s identification details.
4. Written sales agreement
This is a very important document. A car sales agreement is a document that gives a detailed explanation of the deal. It shows the details and terms of the agreement between a car buyer and the seller.
A good sales agreement should have the following details;
- The seller’s name, address, and identification details
- The buyer’s name and identification details
- Details of the car being sold, including make, model, registration number, fuel type, mileage, body type, chassis & engine number, and color
- Details of the deal, including the amount to be paid, the mode of payment, and when the logbook transfer is to be initiated
- When and where the car handover will take place
This agreement should be signed by the seller, the buyer, and any other witnesses.
If you’re buying a foreign-used car, you should also request the vehicle auction sheet and inspection certificate from the seller.
Apart from these documents, you should also ask for the seller’s bank details (especially if you’re buying from a private seller). It’s advisable to never pay in cash when buying a car. It goes without saying that walking around with a huge amount of money is a security risk to yourself. Instead, transact through the bank.
A bank transfer also serves as evidence that you paid for the car, in case you’re dealing with a rogue seller who’ll want to go back on their word.
Documents You Should Have After Buying a Car in Kenya
You’ve now paid for the vehicle, it’s been transferred and duly registered to you. The hard part is done.
You can relax, take a few selfies in your new ride for your social media, call your mother so that she makes the customary African “those which are made by human hands” prayer to protect you against accidents (and for her chamaa boasting), and fantasize about all those road trips that you’ll (never) take. Just ensure that you have these documents as well;
1. Logbook in your name
The logbook proves you own the car. Even if you bought the car through car financing, ensure you’re listed as a co-owner in the logbook alongside your financier. It takes about a few weeks for NTSA to process the logbook after the transfer is done. will receive instructions on where to collect the logbook once this is done.
2. Valid insurance certificate
It is mandatory for all cars on Kenyan roads to have valid insurance cover. The minimum cover you can have is Third Party Only (TPO) cover. An insurance cover protects you against financial and legal liabilities in case you get into an accident.
Here’s everything you need to know about car insurance in Kenya.
3. Valid driving license
You already know you need to have a valid driving license before you get behind the wheel. But it doesn’t hurt to remind you. Kenya transitioned to smart driving licenses in 2020 so ensure you have the new generation driving license. The old, booklet-style driving license was phased out in December 2020.
There you have it, those are the documents you should have from the start of buying a car, the transaction period to after owning the car. They will help identify the car as yours plus increase ownership safety.
Where to Buy a Locally Used Car in Nairobi
Buying a car in Kenya is easier when you know the right steps to take and the documents to have. This makes the difference between getting a good deal and being defrauded. Whether you’re buying a foreign or locally used car, you need to be sure and safe.
At Peach Cars, we will hold your hand and support you throughout your car-buying journey. We will be with you every step, from identifying your dream car to driving it out of our Lavington office. Let us help you manage all the paperwork.