The Kenya Revenue Authority (KRA) has issued a detailed clarification on its decision to implement a revised Current Retail Selling Price (CRSP) list for imported motor vehicles, following public uproar and concern from car dealers across the country.
The revised CRSP—used to determine the tax payable on used vehicle imports—is the first such update since 2019 and reflects changes in the economic environment, including a weaker shilling, increased tax rates, and the entry of new vehicle models into the market.
In a statement, KRA noted that the review is part of a periodic process necessary to keep vehicle valuation aligned with prevailing market realities. The authority cited significant shifts in the exchange rate, with the shilling dropping from around Kshs. 100 to the US dollar in 2019 to about Kshs. 130 in 2025. Over the same period, import duty rates rose from 25% to 35%, and the excise duty on some units increased to 35%, up from a previous ceiling of 30%.
“The 2025 CRSP list takes into account these economic changes and incorporates thousands of new vehicle models not previously listed,” KRA said. “This ensures that the valuation process remains transparent, consistent, and responsive to the current automotive landscape.”
Legal and Historical Context
Customs valuation in Kenya is guided by the World Trade Organisation (WTO) Agreement on Customs Valuation, which has been domesticated through the East African Community Customs Management Act (EACCMA), 2004. The CRSP methodology was adopted following stakeholder consultations to address concerns over the subjective valuation of used cars.
Depreciation is then applied to the CRSP depending on a vehicle’s age to calculate the customs value of used vehicles. KRA maintains that this system offers predictability and fairness compared to relying solely on invoice values, which can be inconsistent.
However, an attempt to revise the CRSP in 2020 was challenged in court by stakeholders, resulting in a legal stalemate that left the 2019 list in force until now.
Stakeholder Engagement and Review Process
In response to a court order, KRA engaged extensively with stakeholders including motor vehicle dealers, importers, and the public. A technical team was formed, drawing members from the Kenya Auto Bazaar Association (KABA), Car Importers Association of Kenya (CIAK), Kenya International Freight Forwarders and Warehousing Association (KIFWA), and the Customs and Border Control Department.
The team met in January 2025 to define the terms of reference for the CRSP review, agree on data sources, and determine timelines. The primary data source was the Japanese Yearbooks, supplemented by information from Goo-net to cover models not captured in the yearbooks.
A final validation meeting in May 2025 incorporated additional input from stakeholders. KRA emphasised that the process was “comprehensive and consultative,” resulting in a list that now includes over 5,200 unique vehicle models, compared to about 3,000 in 2019.
“The revised CRSP is based on detailed model specifications, including trim levels and performance indicators,” KRA said. “This is a significant improvement from the 2019 version, which relied mainly on engine capacity and drive configuration.”
Ongoing Updates and Public Access
Despite the expansion, KRA acknowledged that some models are still missing due to limited data. The authority said it is working with stakeholders to identify additional sources and will update the CRSP continuously. The revised list is available on the KRA website.
KRA says it is commitment to a “transparent and collaborative valuation process that balances regulatory compliance, stakeholder input, and economic realities.”
The move comes amid heightened scrutiny from both the public and the motor vehicle importation sector, with many expressing concern over potential increases in the cost of importing vehicles. KRA insists the changes are not designed to raise taxes arbitrarily but to ensure valuations are accurate and fair.
