The Kenya Revenue Authority (KRA) has implemented a revised valuation list for used motor vehicles, known as the Current Retail Selling Price (CRSP), marking the first update since 2019. The overhaul, which comes after legal and economic hurdles stalled previous attempts, introduces significant changes in how import duties and excise taxes on vehicles are calculated.
The revised CRSP list reflects key shifts in the economic environment, such as exchange rate fluctuations and updated vehicle models, with over 5,200 unique models now evaluated, compared to approximately 3,000 in the 2019 list.
The CRSP forms the basis for determining the customs value of used motor vehicles, with taxes calculated by applying depreciation to the current retail price of a similar new model. The valuation is governed by the World Trade Organization (WTO) Agreement on Customs Valuation, domesticated under Kenya’s East African Community Customs Management Act (EACCMA), 2004.
The last attempt by KRA to update the list in 2020 was challenged in court by stakeholders, freezing changes to the CRSP list until now.
The revised CRSP is significant as it determines the amount of import duty and excise tax payable on used motor vehicles. In the new system, the authority incorporates current market realities including updated exchange rates and vehicle specifications.
In 2019, the exchange rate stood at Kshs. 100 to the US dollar. As of 2025, it has depreciated to Kshs. 130. Concurrently, the import duty rate has increased from 25% to 35%, with excise duty also climbing for some vehicles from 30% to 35%.
Additionally, many newer and technologically advanced models introduced after 2019 had not been included in the previous CRSP list, creating valuation gaps and market distortions.
Following a court directive, KRA conducted a rigorous consultative process with stakeholders, including motor vehicle importers, freight forwarders, and customs officials. The Authority also invited public feedback.
Key industry bodies represented included the Kenya Auto Bazaar Association (KABA), Car Importers Association of Kenya (CIAK), Kenya International Freight Forwarders & Warehousing Association (KIFWA), and the Customs & Border Control Department.
A technical meeting in January 2025 set the methodology, using data from Japanese Yearbooks as the primary reference point. Gaps in model coverage were filled using Goo-net, a widely recognised Japanese vehicle database.
The 2025 CRSP introduces a model-specific approach, considering trim levels and vehicle performance metrics, a departure from the previous method which relied more on engine capacity and drive configuration.
“The updated methodology ensures more accuracy and transparency in vehicle valuation,” KRA said in its statement. This refinement has contributed to a significant increase in the number of vehicle models listed, enhancing compliance and predictability.
However, the authority admitted that some models are still missing due to a lack of data in both Japanese Yearbooks and Goo-net. These gaps will be addressed in future updates, with the CRSP list now set to be a continuously updated resource, available on the KRA website.
Motor vehicle importers had previously expressed concern about the use of FOB (Free on Board) invoice values, arguing that they are susceptible to manipulation. The retention of the CRSP approach, albeit revised, has been broadly welcomed for its standardisation and transparency.
With the new valuation list now in force, experts expect changes in vehicle pricing at the retail level, potentially influencing consumer decisions and import trends. The rise in excise and import duty could also have implications for the government’s revenue targets under the Finance Act 2025.
KRA reiterated its commitment to periodically review the CRSP to accommodate evolving market trends, inflationary pressures, and changes in tax policy. The move is seen as part of a broader government strategy to modernise tax administration and enhance domestic revenue mobilisation.
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