High Court Suspends KRA’s New CRSP Schedule for Used Motor Vehicles

High Court Ruling: Temporary Suspension

The High Court granted prayers seeking suspension of the KRA CRSP circular on a temporary basis until July 17, 2025, following a petition that challenged the implementation process. The court’s order stays both the circular dated 22nd May 2025, and the public notice dated 30th May 2025 published on the KRA website. 

Key Points of the Court Ruling:

Immediate Relief: The suspension brings temporary relief to importers and others involved in the motor vehicle trade.

Procedural Issues: The court noted that “the impugned CRSP was hurriedly assembled and is pervaded with fundamental errors and omissions”.

Transition Concerns: The petition argued that pushing the new schedule without proper transition steps would punish those who followed previous regulations in good faith.

Next Steps: The case has been adjourned until 17th July 2025, with directions that all related documents be served on the respondents.

What is CRSP and Why Does It Matter?

The Current Retail Selling Price (CRSP) is a standardized pricing framework used by KRA to determine the customs value of imported used motor vehicles. This valuation directly affects the amount of import duty, excise duty, and Value Added Tax (VAT) that importers must pay when bringing vehicles into Kenya.

For car buyers and importers, understanding CRSP is crucial as it directly influences the final cost of imported vehicles, making some models more or less affordable depending on their classification and valuation under the new system. Read the full article on the New CRSP Schedule for Used Motor Vehicles.

Stay Informed

The High Court’s temporary suspension of KRA’s new CRSP schedule provides a crucial breathing space for Kenya’s automotive sector. The suspension until 17th July 2025, allows stakeholders to address concerns about procedural issues and potential financial impact.

While the proposed changes promised greater transparency and alignment with international standards, the court noted that the schedule “was hurriedly assembled and is pervaded with fundamental errors and omissions”. This highlights the importance of proper consultation and transition planning in major policy changes.

For now, car buyers, importers, and dealers can continue operating under the existing CRSP framework while awaiting the court’s final decision. The outcome of the 17th July hearing will determine whether the new schedule proceeds, gets modified, or faces further delays.

Stay tuned to CarNews KE for updates on this developing story and its impact on Kenya’s automotive market.

UPDATE NOTICE: This story is developing. We will continue to monitor court proceedings and provide updates as they become available.