The Kenya Revenue Authority (KRA) has defended its decision to implement a revised Current Retail Selling Price (CRSP) list for imported motor vehicles, arguing that the update is essential to reflect prevailing economic realities and the influx of new car models in the market.
In a statement released this week, the tax agency confirmed that the revised CRSP will take effect from July 1, 2025, marking the first update to the vehicle valuation guide since 2019.
“The previous CRSP had become outdated due to significant economic changes and technological advancements in the automotive industry,” the authority said.
The CRSP serves as a critical tool in determining the customs value of used motor vehicles, which is calculated by applying depreciation to the value of a new car.
This valuation method is aligned with international standards under the World Trade Organisation (WTO) Agreement on Customs Valuation, which Kenya has incorporated into law through the East African Community Customs Management Act (EACCMA), 2004.
KRA explained that the CRSP approach was agreed upon after consultations with industry stakeholders as a way of ensuring fairness, predictability, and transparency in vehicle import taxation.
“It was agreed that the CRSP would be periodically reviewed to accommodate factors such as exchange rate fluctuations, inflation, tax adjustments, and the entry of new vehicle models,” the statement read.
According to KRA, an earlier attempt to revise the CRSP in 2020 was blocked by a court challenge. However, a fresh round of consultations held in 2025 led to a consensus and successful completion of the review.
“For instance, in 2019, the exchange rate stood at around Sh100 to the US dollar, while in 2025 it is about Sh130. Import duty rates have also risen from 25% to 35%, and excise duty on some units has increased from 30% to 35%,” KRA noted.
The review also considered new vehicle models introduced to the market in recent years — models that were not accounted for in the 2019 CRSP.
The tax authority confirmed that the revised CRSP was developed through a multi-stakeholder technical working group, which included representatives from the Kenya Auto Bazaar Association (KABA), Car Importers Association of Kenya (CIAK), Kenya International Freight Forwarders and Warehousing Association (KIFWA), and KRA’s Customs & Border Control Department.
The working group began its review with a joint meeting in January 2025, where members agreed on data sources and valuation methodology.
The majority of reference data was sourced from Japanese Yearbooks, with supplementary information drawn from Goo-net, a Japanese automotive database, to account for missing models.
KRA concluded by assuring importers that the revised CRSP aims to create a fair and modern system that reflects today’s market conditions and promotes greater confidence in the importation and taxation process.
