KRA to unveil new CRSP template by July 2025 as car dealers cry foul over inflated and inconsistent duty rates
The Kenya Revenue Authority (KRA) is set to release a new Current Retail Selling Price (CRSP) template by July 2025 in a long overdue overhaul of how taxes are charged on imported used vehicles. This comes after car dealers have been complaining of inflated and inconsistent duty rates under the current system.
At the centre of the controversy is the 2019 CRSP schedule which has been criticized for being unclear, not having newer car models and using a valuation methodology that dealers say is arbitrary and economically harmful.
Why Is CRSP Being Reviewed?
CRSP is the valuation template KRA uses to assess taxes on imported used cars. It sets the benchmark price for a vehicle based on its brand new market value in Kenya, then applies depreciation, local tax deductions and profit margins to determine the dutiable value.
However industry stakeholders argue that the 2019 version no longer reflects current market realities. Many newer models are missing from the list and KRA is forced to use alternative data sources or estimates. As a result importers are reporting questionable tax figures with some newer Honda models being taxed more than higher end brands like Mercedes Benz.
The Industry Pushback
Motor vehicle dealers and associations have strongly opposed the continued use of 2019 CRSP saying it’s not transparent and results in uneven tax assessments. The discontent escalated into a court case and a Kenyan court ruled that CRSP 2019 was unconstitutional due to lack of public participation during its formulation.
Dealers have given specific examples of unfair taxation including inflated duty on models like Mazda CX-3 which are not in the outdated schedule. This has created uncertainty in pricing and has discouraged both dealers and potential car buyers and has affected the used car market.
What Will Change with the New CRSP?
KRA is working with representatives from several key industry bodies including Kenya Auto Bazaar Association, Car Importers Association of Kenya, Kenya International Freight and Warehousing Association and new car dealers to develop the new template.
According to KRA the new CRSP will have newer vehicle models and will draw from global best practices in vehicle valuation. Once done it will bring consistency in duty application and taxes will vary according to the actual market value of each car.This will result in some paying more and others less. In essence vehicles will be taxed correctly and some dealers will benefit with newer models while others will pay more.
Second-Hand Car Prices
With 80% of Kenya’s car market being second-hand imports, the new CRSP will have a direct impact on car prices in the country. Since taxes make up a big chunk of a car’s retail price, any changes to the valuation model will affect what consumers pay at the point of purchase.
Car importers are watching closely, hoping the new CRSP will bring much needed predictability and fairness. Consumers can expect price changes once the new schedule kicks in—up or down depending on the car’s make, model and engine size.
Forward
KRA’s commitment to updating the CRSP and involving stakeholders is a good step towards rebuilding trust in the vehicle import tax process. But the real test will be how transparent and inclusive the rollout is—and whether the new schedule truly reflects the market.
July 2025 is the deadline but the industry will be watching to see if the changes are comprehensive enough to prevent a repeat of the 2019 template woes.