The Kenya Revenue Authority (KRA) has issued a clarification explaining a recent change to how taxes are calculated on imported second-hand vehicles.
This clarification follows an announcement by the authority on May 30, 2025, regarding the new Current Retail Selling Price(CRSP) for imported second-hand vehicles effective July 1, 2025.
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.
In a follow-up statement on June 6, 2025, the authority addressed the legal basis of customs valuation, the reason behind the review of the existing CRSP, and the process involved in its revision.
“In response to public inquiries and recent media reports regarding the implementation of the revised CRSP, KRA wishes to clarify the following: legal basis of custom validation, What is CRSP, and Why is it Used?, Why the Review of the Current CRSP? And the Process of Reviewing the CRSP,” the statement read.
The authority explained that the import duty rate, which is a key factor in the CRSP, has increased from 25 per cent in 2019 to 35 per cent in 2025.
It stated that the excise duty has also gone up, with some cars now taxed at 35 per cent compared to a maximum of 30 per cent in 2019. Additionally, many new car models have entered the market that were not included in the old list.
In the statement, KRA added that before updating the CRSP, it held several meetings with stakeholders in the motor vehicle sector, and the public was also invited to give their views.
The authority stated that the updated CRSP list now includes over 5200 unique models as compared to the 2019 list, which had about 3000 models.
KRA added that some models could not be included because they were not found in the data sources used, but the list will continue to be updated and shared on its website.
It noted that the pricing system is based on the World Trade Organisation (WTO) Agreement on Customs Valuation, which is also part of Kenyan law through the East African Community Customs Management Act, 2004, which sets out how the customs value of imported goods should be calculated.
Some of the changes according to the new CRSP schedule in some cars are: the 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.
''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 on May 30.
