The Kenya Revenue Authority (KRA) has clarified its decision to revise the Current Retail Selling Price (CRSP) of motor vehicles, leading to the introduction of a new pricing template that will determine taxes on imported cars. The revised CRSP framework is set to take effect from July 1, 2025.
According to local motor vehicle dealers, the new pricing structure will result in significantly higher import duties for several popular car models, although a few may see a reduction in costs. This marks a major shift in Kenya’s motor vehicle import taxation system, with some duties nearly doubling.
In a statement, KRA explained that the latest revision was long overdue, as the CRSP had not been updated since 2019. The authority said the changes were driven by various market and economic factors, including the emergence of new car models and fluctuations in key variables such as exchange rates, import duty, and excise duty.
“For example, in 2019, the exchange rate was approximately Ksh.100 to the US dollar, while in 2025 it stands at around Ksh.130. Additionally, the import duty rate, which is a key factor in the CRSP, has increased from 25 per cent in 2019 to 35 per cent in 2025,” the statement read in part.
The KRA emphasized that the review is meant to reflect emerging changes in the motor vehicle sector and to ensure that tax assessments on imported cars are consistent with current economic conditions and global market values. While the update may result in increased costs for many consumers, KRA insists that the new framework provides a more accurate and fair basis for taxation.
