The Kenya Revenue Authority (KRA) has come out to explain a recent change in how taxes on imported second-hand vehicles are calculated.
This move comes after KRA made an announcement on May 30, 2025, stating that a new Current Retail Selling Price (CRSP) will take effect from July 1, 2025. The CRSP is the price KRA uses to determine how much tax someone should pay when importing a used car into Kenya.
This price helps set the value of the car in the eyes of the tax authorities so that the correct amount of duty, excise, and VAT can be charged.
In a statement released on June 6, 2025, KRA explained why the CRSP was revised and how the new figures were decided.
They said that many people had questions and concerns following the May 30 announcement. To answer these concerns, KRA gave a breakdown of the legal reasons for the change, how CRSP works, why the review was necessary, and the steps taken during the update.
One of the key points raised was that the import duty rate has increased over time. Back in 2019, this rate stood at 25 percent, but by 2025, it has been raised to 35 percent. In addition, excise duty on some vehicles has also increased, from a maximum of 30 percent in 2019 to 35 percent now.
This means car importers will now have to pay more in taxes than before.KRA noted that many new car models have come into the market since the last CRSP was prepared in 2019, so there was a need to update the list.
To make the new CRSP accurate and fair, KRA said they held several meetings with key players in the motor vehicle industry. The public was also given a chance to share their opinions.
After these consultations, the new CRSP list was prepared and now contains over 5,200 unique car models. This is a big jump from the 3,000 models included in the 2019 list.
However, KRA mentioned that some car models were not included in the new list because they could not be found in the official data sources used during the review.
Even so, KRA promised that the list will be continuously updated and made available on their website.The CRSP system is based on international rules under the World Trade Organisation (WTO) Agreement on Customs Valuation.
These rules are also part of Kenyan law through the East African Community Customs Management Act, 2004. This law helps ensure that all imported goods are taxed fairly and consistently.
KRA has given examples of how the new CRSP will affect the value of specific cars. For instance, the price used for tax purposes of a Vitz Hybrid F is now Ksh3,440,622.
A Prado TX-L-E4 will be valued at Ksh9,095,659. A Mazda CX-5 20S comes in at Ksh6,839,016. If someone wants to import a Toyota Premio 2.0G, they will be taxed based on a value of Ksh4,344,220, while a Probox GL will be taxed using a value of Ksh2,573,759.
KRA’s final message to the public is clear. Starting July 1, 2025, all used cars imported into the country will be taxed based on the new CRSP schedule.
They hope that this new system will bring fairness and transparency in customs valuation, while also helping to keep up with changes in the car market.
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