Effective 1st July, the Kenya Revenue Authority (KRA) will implement the new Current Retail Selling Price (CRSP) schedule, changing how customs duty on imported second-hand cars is calculated.
The CRSP is the official price that the KRA uses to calculate taxes on imported used cars. It establishes official retail prices for vehicles, which form the basis for import tax calculations.
Instead of using a fixed retail price, the KRA will now base taxes on the actual price paid for the vehicle, making valuations more accurate and fair.
''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,'' the statement read in part.
This represents a major shift from what was done previously, where the CRSP system used fixed values that sometimes overestimated car prices, leading to higher import taxes.
The new schedule aims to make tax calculations fairer and reduce disputes between importers and the Kenya Revenue Authority (KRA).
According to KRA, the decision to change the CRSP system follows extensive engagement with stakeholders to ensure that the new CRSP factors in their feedback.
Following the changes, importers and other stakeholders have been encouraged to visit the taxman's official website to familiarise themselves with the new list and acquaint themselves with the changes.
In the new CRSP, KRA will now base taxes on the real price paid for the vehicle, as shown in invoices and receipts. The value of the car is reduced based on its age, meaning older cars are taxed fairly.
Taxes will also factor in shipping and import costs, including freight charges, insurance, and other import-related costs.
In the past, discrepancies in valuation led to overpricing, tax disputes, and unpredictable duty rates. The updated CRSP list aims to reflect real market values. The previous CRSP list also excluded newer car models. The new system includes more recent vehicles, contrary to the old system.
According to the new CRSP schedule, here are how some cars will retail: Vitz Hybrid F will cost Ksh3,440,622, while a Prado TX-L-E4 will cost you Ksh9,095,659, and a Mazda CX-5 20S will cost you Ksh6, 839,016. To bag a Toyota Premio 2.0G you will have to part with Ksh4,344,220, and Ksh2,573,759 for a Probox GL.
