KRA Introduces New CRSP Schedule for Used Motor Vehicles

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 a higher CRSP value directly inflates the final cost of imported vehicles, making some models significantly more expensive depending on their classification and valuation under the new system.

 

Key Changes in the 2025 CRSP Update

Expanded Vehicle Model Coverage

The 2025 CRSP features over 5,200 unique vehicle models, a significant jump from the 3,000 models listed in 2019. This expansion includes newer models and more comprehensive coverage of various vehicle categories, factoring in detailed specifications such as trim levels and performance, ensuring better accuracy in valuation.

Increased Duty Rates

One of the most significant changes is the adjustment in duty rates, reflecting updated economic variables.

• The import duty rate has increased from 25% in 2019 to 35% in 2025. This 40% relative increase forms the foundation for all other tax calculations.
• Excise duty rates for some units have risen to 35%, compared to a maximum of 30% in 2019, particularly affecting high-performance and luxury vehicles.
• The exchange rate used in duty calculations has also been updated, from KES 100 per USD in 2019 to approximately KES 130 per USD in 2025, further increasing the Kenya shilling value of imports

Enhanced Stakeholder Engagement

According to KRA, this update follows an extensive stakeholder engagement process, where a technical team from KRA and industry players jointly defined the new CRSP methodology. Consultations with importers, car dealers, and clearing agents were conducted, aiming for a more transparent and predictable valuation system.

Impact on Used Car Prices

The new CRSP schedule is expected to have immediate market implications. Industry analysts predict that dealers will pass increased duty costs to consumers, potentially raising used car prices by 15-25% for affected models, with some popular compact cars seeing tax increases of up to 145%.

 

Real-World Price Examples

To illustrate the impact, here are specific examples of how the CRSP changes affect popular car models in Kenya:

Popular Compact Cars:

• Toyota Vitz Hybrid F: Now costs KSh 3,440,622 for total landing cost
• Honda Fit and Nissan Note models face similar duty increases affecting their affordability. For instance, the duty on a Nissan Note is reported to increase sharply from around KSh 292,000 to KSh 570,000.

Mid-Range Saloon:

• Toyota Premio 2.0G: Total landing cost now KSh 4,344,220
• Mazda CX-5 20S: Now costs KSh 6,839,016 (its duty alone increased from KSh 798,000 to KSh 1.37 million).

SUVs and Premium Models:

• Toyota Prado TX-L-E4: Total cost reaches KSh 9,095,659
• Toyota Harrier 2.0L (petrol): Taxes will increase to KSh 1 million from KSh 883,816.

Luxury Vehicle Segment (Most Affected):

• Porsche 911 Turbo S: Duty jumped from KSh 4.7 million to KSh 13.3 million
• BMW M5 Comp: Duty increased from KSh 4.9 million to KSh 7.7 million
• Volvo XC60 D4 (2018): Duty rose from KSh 952,000 to KSh 1.7 million

This price adjustment will particularly affect recently manufactured vehicles (2020-2024 models) as CRSP values now reflect newer global vehicle prices.

 

Transition to Transaction Value System

The 2025 CRSP update is part of a broader strategic shift towards a Transaction Value System – a model KRA claims will enhance transparency in vehicle importation and customs valuation. This transition aims to create a more market-responsive valuation system that better reflects actual vehicle values in the international market, thereby reducing tax evasion and ensuring fairer and more predictable valuations.

 

What This Means for Car Buyers

For Individual Importers:

Car buyers planning to import vehicles should factor in the increased costs when budgeting. The new rates apply to all vehicles cleared from 1^st July 2025, regardless of when they were shipped.

For Dealers:

Motor vehicle dealers will need to adjust their pricing strategies to accommodate the higher duty costs while remaining competitive in the market. This may lead to shrinking profit margins and a shift towards importing models with lower duties or an increased focus on locally used vehicles.

For the Local Market:

The changes may slow down the influx of certain vehicle categories, potentially affecting the supply and variety of used cars available in the Kenyan market. There is an expected surge in demand for locally used vehicles as a cheaper alternative.|

 

KRA’s Official Position

The Kenya Revenue Authority (KRA) wishes to inform the public that, effective 1st July 2025, a new Current Retail Selling Price (CRSP) schedule will be applied in the computation of customs value for used motor vehicles imported into the country.

The authority has emphasized that this update aligns with international best practices and aims to create a more transparent and efficient vehicle importation process. KRA has made the updated CRSP list available on its website.

 

Industry Response and Market Outlook

The automotive industry has expressed mixed reactions to the new CRSP schedule. While some stakeholders appreciate the expanded model coverage and transparency improvements, others are concerned about the potential impact on market accessibility and vehicle affordability.

Market experts suggest that the changes may lead to:

• Increased focus on locally assembled vehicles
• Greater demand for older, more affordable models
• Potential shift towards alternative transportation solutions

 

How to Navigate the New System

For Importers

1. Use updated CRSP calculators available online.
2. Factor in the new duty rates when evaluating vehicle purchases.
3. Consider timing of shipments to optimize costs.
4. Consult with clearing agents familiar with the new system.

For Buyers

1. Research the CRSP value of your target vehicle before purchasing.
2. Compare total landing costs including the new duties.
3. Consider certified local dealers who understand the new system.
4. Explore financing options that account for higher vehicle prices, such as logbook loans to cover tax shortfalls.

 

Looking Ahead

The implementation of the new CRSP schedule represents a significant shift in Kenya’s automotive importation landscape. While the immediate impact may be increased costs, the long-term benefits of improved transparency and market-responsive valuation could benefit the industry overall.

As the market adjusts to these changes, consumers and industry players will need to adapt their strategies accordingly. The success of this transition will largely depend on how effectively stakeholders navigate the new pricing framework while maintaining market competitiveness.

 The KRA’s new CRSP schedule for used motor vehicles marks a pivotal moment for Kenya’s automotive sector. While the changes bring challenges in terms of increased costs, they also promise greater transparency and alignment with international standards. Car buyers, importers, and dealers must stay informed about these changes to make strategic decisions in this evolving market landscape.

 

Stay Informed

We’ll continue monitoring the progress of these significant changes to the CRSP schedule. As of 1st July 2025, the High Court has issued a temporary order suspending the implementation of the new CRSP list until 17th July 2025, pending the hearing and determination of a petition. The petition argues that the new CRSP was introduced without “meaningful public participation” beyond a narrow group of car dealers, violating constitutional requirements, and that the 30-day notice period was unreasonable. The court’s order stays both the circular dated 22nd May 2025, and the public notice dated 30th May 2025. Read more about the KRA CRSP High Court Suspension. 

What This Means for You:

For now, the previous CRSP schedule (from 2019) remains in effect for customs valuation of used motor vehicles. However, this is a temporary suspension, and the situation may change after the 17th July hearing. We will update our readers as soon as there are further developments regarding the implementation status.

 

Have Your Say:

What do you think about the KRA’s new CRSP schedule and the recent High Court ruling? Do you believe there was sufficient public participation? How will these changes, if implemented, affect your plans for car ownership or your business?

Share your thoughts with us at news@carnews.co.ke or by leaving a comment below. You can also join the conversation on our Instagram and YouTube Channel.

 

For the latest updates on vehicle importation, customs procedures, and market trends, stay tuned to CarNews KE, your trusted source for automotive news in Kenya.