NAIROBI, KENYA, JUNE 30, 2025 – The High Court has temporarily halted the implementation of the Kenya Revenue Authority’s (KRA) new Current Retail Selling Price (CRSP) schedule for used motor vehicles, pending a legal challenge over its constitutionality and fairness.
High Court Halts KRA Vehicle Valuation Rollout Ahead of July 1
Justice Joe Omido issued interim orders stopping the rollout of the updated CRSP list—contained in a May 22 KRA circular and May 30 public notice—until July 17, 2025, pending a full hearing.
The petitioner, who filed the case in Kisumu, argued the revised CRSP was introduced without sufficient public input.
Court Told CRSP Introduced Without Public Participation
The petitioner told the court that the KRA engaged only motor vehicle dealers, excluding the general public, car buyers, and other affected citizens—violating Article 10 and 201 of the Constitution of Kenya. These articles require inclusive and transparent public participation in decisions that affect national finance and policy.
The petition further asserts that since the CRSP list draws legal authority from Section 122 and the Fourth Schedule of the East African Community Customs Management Act, it qualifies as a statutory instrument. Under Article 94(6) of the Constitution and the Statutory Instruments Act, such regulations must be tabled before Parliament for oversight—a step that KRA allegedly skipped.
Also read: Court Stops Implementation of KRA’s New Tax on Vehicles
Notice Period Called Unreasonable, Errors in the List Cited
The petition also argues the 30-day implementation window was arbitrary and unreasonable, in breach of Article 47 of the Constitution, which guarantees fair administrative action.
Importers typically take between three to six months to ship and clear vehicles. Many had already committed funds based on the 2019 CRSP schedule, and were blindsided by the new rates.
The petition also highlights major errors in the new CRSP list, such as:
- Omission of popular car models
- Misclassified fuel types
- Chassis number mismatches
- Inconsistent pricing for identical vehicles
Some vehicles affected are already in transit, meaning importers have no way to adjust without incurring significant losses.
What Next? KRA Ordered to Respond
The court has directed that KRA and other respondents be served with the petition, application, and all supporting documents. They must respond before the next hearing on July 17, 2025, when the court will determine whether the CRSP was lawfully enacted and whether it serves the public interest.
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