The High Court has halted the Kenya Revenue Authority's implementation of the revised Current Retail Selling Price (CRSP) schedule for used motor vehicles, suspending its rollout until the case is heard and determined.
In interim orders issued on Monday, the court certified as urgent an application seeking to stop the rollout of the revised CRSP schedule, which was set to take effect from tomorrow, July 1, 2025.
The petitioner had argued that the new CRSP list was introduced without meaningful public participation, in violation of constitutional requirements under Article 10 and Article 201, which mandate inclusive engagement in legislative and public finance processes.
Additionally, the petitioner asked the court to compel the taxman to disclose the identities of the stakeholders consulted and to provide details of the engagement process.
The latter demand comes after the taxman had announced that the decision to change the CRSP system followed an extensive engagement with stakeholders to ensure that the system factored in their feedback.
On May 30, KRA announced that, effective July 1, it would implement the new Current Retail Selling Price (CRSP) schedule, changing how customs duty on imported second-hand cars is calculated.
Moreover, following the changes, importers and other stakeholders had been encouraged to visit the taxman's official website to familiarise themselves with the new list and acquaint themselves with the changes.
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.
Before the developments, instead of using a fixed retail price, KRA had hoped to base taxes on the actual price paid for the vehicle, a process it indicated would make 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,'' read part of the statement by the taxman on the rollout.
The court has frozen implementation of the new prices until July 17, pending a full hearing and determination of the matter.
However, should the court set aside Monday's orders and allow KRA to proceed as it had planned, the authority would 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 would also factor in shipping and import costs, including freight charges, insurance, and other import-related costs.
