The Kenya Revenue Authority (KRA) has provided an official clarification concerning the recently announced adjustments to how taxes are calculated on imported second-hand vehicles.
This move follows KRA’s earlier announcement on May 30, 2025, where it introduced an updated Current Retail Selling Price (CRSP) schedule, set to take effect from July 1, 2025.
The CRSP is a benchmark price list used by KRA to determine the amount of tax payable on imported used cars. It outlines the official retail values of different vehicle models, which form the foundation for computing various import duties and taxes.
In a comprehensive follow-up statement released on June 6, 2025, KRA addressed the mounting public concerns and media reports about the implications of the revised CRSP.
The authority explained in detail the legal framework, the purpose of the CRSP, why the update was necessary, and how the review process was conducted.
According to KRA, the change in vehicle tax calculations is supported by the World Trade Organisation (WTO) Agreement on Customs Valuation, which has been adopted into Kenyan law via the East African Community Customs Management Act of 2004.
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This law provides guidelines on how to determine the customs value of goods brought into the country, including motor vehicles.
KRA noted that import duty rates have risen from 25% in 2019 to 35% in 2025, making tax obligations on imported vehicles higher than before.
The excise duty applied to vehicles has also been revised upward, with some vehicle models now attracting up to 35% excise tax, compared to a maximum of 30% in 2019.
Another key reason behind the CRSP review, KRA explained, is the influx of new vehicle models into the Kenyan market.
Many of these models were not included in the previous 2019 CRSP list, making it necessary to create an updated and more accurate valuation list. The new CRSP now covers over 5,200 distinct vehicle models, compared to about 3,000 models listed in 2019.
To ensure inclusivity and transparency, KRA stated that it conducted several consultative forums with industry stakeholders, including car importers and dealers, before finalising the new CRSP. Additionally, members of the public were invited to submit their feedback, which contributed to shaping the final document.
Despite these efforts, KRA acknowledged that a few car models could not be included in the new CRSP due to lack of reliable data.
However, the authority reassured the public that the CRSP list would be continuously updated and made available through its official website.
Under the updated CRSP list, the tax value of several popular car models has significantly changed. For example:
- A Toyota Vitz Hybrid F will now be valued at Ksh3,440,622 for taxation purposes.
- A Toyota Land Cruiser Prado TX-L-E4 will attract a value of Ksh9,095,659.
- The Mazda CX-5 20S is listed at Ksh6,839,016.
- A Toyota Premio 2.0G is priced at Ksh4,344,220, while
- A Toyota Probox GL will have a CRSP value of Ksh2,573,759.
The May 30 statement read, “The Kenya Revenue Authority (KRA) wishes to inform the public that, effective 1st July 2025, a new Current Retail Selling Price (CRSP) schedule will be applied in the computation of customs value for used motor vehicles imported into the country.”
With this clarification, KRA aims to enhance transparency, ensure accurate tax computation, and align with global valuation standards. It also serves as a reminder to vehicle importers and buyers to consult the revised CRSP before making purchasing decisions to avoid unexpected costs.
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