The Kenya Revenue Authority (KRA) has defended its decision to revise the retail selling prices of imported used motor vehicles, following a push back from dealers who warn the move could push up retail prices.
The Authority says the revision, the first since 2019, was made after consultations with stakeholders and will adopt the Current Retail Selling Price (CRSP) method to address persistent challenges in valuing used vehicles.
“This approach aims to standardise values and ensure predictability and transparency within the industry,” said KRA in a statement on Friday, June 6.
In a public notice dated May 30, KRA said the 2019 CRSP database was outdated and excluded newer car models, prompting the review. The CRSP is used to calculate taxes on imported vehicles.
Car importers warn that the revision will see price hikes at the retail level as it is expected to raise the tax burden for dealers and users.
The CRSP is reviewed periodically to reflect changes in the economic environment, including exchange rate fluctuations, inflation, the introduction of newer vehicle models, and changes in tax rates. According to the revenue authority, the import duty rate has increased from 25 per cent in 2019 to 35 per cent in 2025.
“Furthermore, many new and more advanced vehicle models have entered the market, which are not included in the 2019 CRSP,” the authority said.
KRA also disputed claims by the Car Importers Association of Kenya that stakeholders were not adequately involved. It said a working team, comprising members from the importers’ association, was formed to deliberate on the updated valuation and that a validation meeting was held in May to incorporate stakeholder feedback.
“The new CRSP is, therefore, a product of a comprehensive consultative process in which stakeholder input was considered.”
The 2025 list now includes more than 5,200 unique vehicle models, up from about 3,000 in the 2019 edition. However, KRA acknowledged some models are still missing due to lack of data in Japanese Yearbooks and Goo-net.
“Once the technical team agrees on additional data sources, the list will be continuously updated and made available to the public,” KRA through the Commissioner, Customs and border Control explained.
Despite the consultations, the Car Importers Association claimed KRA ignored critical input, particularly regarding valuation methodology and prevailing market trends.
The association accused KRA of rushing the implementation and warned that the proposed changes could lead to a 70 percent stock reduction among small- and medium-sized importers, job losses across the value chain, and revenue losses for the authority itself.
They are calling for a suspension of the proposed changes, a 90-day review period, and the formation of a joint technical committee to re-evaluate CRSP values based on current market data.
Based on the 2019 CRSP, a Toyota Passo 990cc cost up to Sh1.4 million, and given the proposed new valuation, it may see an 87 per cent increase, going for Sh2.6 million.
The Price of a Nissan Vanette will more than double to Sh4.67 million, up from Sh2.3 million. A Toyota Probox may see a 91 percent increase from Sh1.7 million, if the proposed amendment sails through.
The association has said the Revenue Authority risks crippling the motor vehicle industry, and has faulted them for increasing duties.
“All these levies and duties are overburdening Kenyans who are major customers of used cars,” Car Importers Association of Kenya.
The Kenya Revenue Authority (KRA) has defended its decision to revise the
retail selling prices
of imported used motor vehicles, following a push back from dealers who warn the move could push up retail prices.
The Authority says the revision, the first since 2019, was made after consultations with stakeholders and will adopt the Current Retail Selling Price (CRSP) method to address persistent challenges in valuing used vehicles.
“This approach aims to standardise values and ensure predictability and transparency within the industry,” said KRA in a statement on Friday, June 6.
In a public notice dated May 30, KRA said the 2019 CRSP database was outdated and excluded newer car models, prompting the review. The CRSP is used to calculate taxes on imported vehicles.
Car importers warn that the revision will see price hikes at the retail level as it is expected to raise the tax burden for dealers and users.
The CRSP is reviewed periodically to reflect changes in the economic environment, including exchange rate fluctuations, inflation, the introduction of newer vehicle models, and changes in tax rates. According to the revenue authority, the import duty rate has increased from 25 per cent in 2019 to 35 per cent in 2025.
“Furthermore, many new and more advanced vehicle models have entered the market, which are not included in the 2019 CRSP,” the authority said.
KRA also disputed claims by the Car Importers Association of Kenya that stakeholders were not adequately involved. It said a working team, comprising members from the importers’ association, was formed to deliberate on the updated valuation and that a validation meeting was held in May to incorporate stakeholder feedback.
“The new CRSP is, therefore, a product of a comprehensive consultative process in which stakeholder input was considered.”
The 2025 list now includes more than 5,200 unique vehicle models, up from about 3,000 in the 2019 edition. However, KRA acknowledged some models are still missing due to lack of data in Japanese Yearbooks and Goo-net.
“Once the technical team agrees on additional data sources, the list will be continuously updated and made available to the public,” KRA through the Commissioner, Customs and border Control explained.
Despite the consultations, the Car Importers Association claimed KRA ignored critical input, particularly regarding valuation methodology and prevailing market trends.
The association accused KRA of rushing the implementation and warned that the proposed changes could lead to a 70 percent stock reduction among small- and medium-sized importers, job losses across the value chain, and revenue losses for the authority itself.
They are calling for a suspension of the proposed changes, a 90-day review period, and the formation of a joint technical committee to re-evaluate CRSP values based on current market data.
Based on the 2019 CRSP, a Toyota Passo 990cc cost up to Sh1.4 million, and given the proposed new valuation, it may see an 87 per cent increase, going for Sh2.6 million.
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The Price of a Nissan Vanette will more than double to Sh4.67 million, up from Sh2.3 million. A Toyota Probox may see a 91 percent increase from Sh1.7 million, if the proposed amendment sails through.
The association has said the Revenue Authority risks crippling the motor vehicle industry, and has faulted them for
increasing duties
.
“All these levies and duties are overburdening Kenyans who are major customers of used cars,” Car Importers Association of Kenya.
By Esther Dianah