KRA boss Humphrey Wattanga/courtesy

KRA Updates Car Tax Rules Amid Rising Import Duties

The Kenya Revenue Authority (KRA) has provided clarification on its rollout of a newly updated Current Retail Selling Price (CRSP) list for used vehicles—the first major revision since 2019.

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This update, introduced after a six-year pause, aims to reflect changes in Kenya’s automotive industry and economic conditions.

In a public notice, KRA stated that the new CRSP list factors in recent trends, including fluctuations in exchange rates, increases in import and excise duties, and the entry of new vehicle models into the local market.

The revision process was informed by consultations with various industry stakeholders, including the Kenya Auto Bazaar Association and the Car Importers Association of Kenya.

The CRSP list plays a vital role in determining the taxes charged on imported second-hand vehicles. It is structured according to global standards set by the World Trade Organization (WTO), which are enforced locally through the East African Community Customs Management Act (EACCMA), 2004.

The 2025 update significantly expands the scope of the valuation list, now covering over 5,200 vehicle models compared to just 3,000 in 2019. Unlike the previous version, which focused mainly on engine capacity and drivetrain, the latest list includes comprehensive vehicle details such as trim levels, features, and performance specifications, enhancing the accuracy of valuations.

KRA acknowledged some gaps in data for newer models, citing the limited coverage in commonly used sources like Japanese Yearbooks and Goo-net. However, it assured the public that efforts are ongoing to refine the list in partnership with technical experts and data providers.

A planned revision in 2020 was shelved due to legal challenges. However, due to the weakening of the Kenyan shilling—from around Sh100 to Sh130 per US dollar—and rising duty rates, KRA says this update was both necessary and overdue.

The revised CRSP list is expected to bring greater clarity and fairness to the taxation process for used car imports, while helping to reduce valuation disputes and align tax assessments with real market values.

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