Car prices in Kenya are set to increase significantly starting July 1, 2025, as the Kenya Revenue Authority (KRA) introduces a new Current Retail Selling Price (CRSP) schedule used to calculate import duty on used vehicles.
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What is CRSP and Why It Matters
CRSP is the benchmark value used by KRA to determine how much tax is payable on imported second-hand cars. When this valuation is increased, it leads to a higher overall cost for importers and consumers alike.
Read also:How to File KRA Returns: A Step-by-Step Guide
In a notice dated May 30, KRA stated that the revised CRSP will apply from July 1 and was developed through extensive stakeholder consultations.
Popular Models See Sharp Increases
Under the new CRSP, some of Kenya’s most commonly imported vehicles are set for steep price hikes. Among those affected are:
- 2018 Mazda CX-5 2WD 2000cc Petrol: Import duty increases from Ksh 733,520 to Ksh 923,275
- 2018 Toyota Vitz Hybrid F 1500cc: Up from Ksh 328,866 to Ksh 488,792
- 2018 Toyota Probox Hybrid: Jumps from Ksh 281,000 to Ksh 480,000
Importers have voiced strong opposition, warning that the updated prices could destabilize the used car market, especially for budget-conscious consumers.
Winners and Losers in the New CRSP
While many models face higher tax burdens, a few high-end vehicles have seen a reduction in duty:
- Toyota Land Cruiser Prado J250: CRSP now at Ksh 13,124,686.25
- Lexus LX 570 and Volkswagen Tiguan: Also benefit from lower customs assessments
Here’s a snapshot of updated CRSP values for key models:
| Car | Model | Updated CRSP |
|---|---|---|
| Mazda | CX-5 20S | Ksh 6,839,015.62 |
| Mazda | Demio XD | Ksh 3,818,064.60 |
| Suzuki | Swift Sport | Ksh 3,382,607.26 |
| Toyota | Land Cruiser Prado J250 | Ksh 13,124,686.25 |
Industry Concerns Over Affordability
Car dealers and lobby groups fear the changes could place cars out of reach for many Kenyans. “We may see a collapse of the second-hand car market if no review is done,” one Mombasa-based importer told The Star.
The updated CRSP schedule will be applied to all used vehicles arriving in Kenya from July onwards. Car buyers and importers are advised to review their plans accordingly.
Stay Informed
For regular updates on changes in vehicle taxation, check official KRA notices here or follow our Business News section.
