The Kenya Revenue Authority (KRA) has announced that, starting July 1, 2025, a new Current Retail Selling Price (CRSP) schedule will be used to calculate customs value for all used cars imported into Kenya. This update follows extensive engagement with industry stakeholders to ensure the new CRSP reflects current market realities and feedback.
The updated CRSP list is now available on the KRA website. Importers and the public are encouraged to review the new list and understand how the changes might affect their import plans.
What’s Changing?
- Higher Taxes for Popular Models:
Taxes on popular used models like the Suzuki Swift, Mazda Demio, and Toyota Vitz will rise sharply—by as much as 145%—as the KRA updates its pricing guide. - Lower Taxes for Some Big Cars:
Larger vehicles, such as the Lexus LX570, will see lower taxes compared to previous rates. - Tax Based on Actual Purchase Price:
From July 1, taxes will be calculated using the actual price paid for the car, including shipping and insurance, not just the fixed CRSP rates. Buyers will need to provide proof of payment for the car, shipping, and insurance. If KRA suspects the declared price is too low, they can still use the CRSP list to adjust the taxable value upwards.
What Does This Mean for You?
If you buy a used car for less than the CRSP, you could pay less tax.
If your purchase price is higher than the CRSP, you may end up paying more.
The new system is meant to make taxation fairer and more transparent, but some buyers may face higher costs, especially for popular small cars.
For more details and to check the new CRSP list, visit the KRA website.
Why Is KRA Making These Changes?
KRA says the new CRSP schedule is designed to:
- Strengthen revenue collection
- Improve compliance
- Reduce manipulation and disputes over vehicle valuations
- Align Kenya’s tax system with international best practices by moving toward invoice-based taxation
Industry Reaction
The changes have sparked concern among dealers and importers, many of whom worry about the impact on car affordability and business margins. However, industry groups like the Car Importers Association of Kenya (CIAK) have welcomed the move toward invoice-based valuation, saying it will restore trust and reduce the dominance of brokers exploiting valuation uncertainties.
In summary:
If you’re planning to import a used car, be sure to review the new tax rules and CRSP list before making any decisions. Tougher times may be ahead for buyers of popular models, while those importing larger vehicles or getting good deals abroad could benefit from the changes.
