The Kenya Revenue Authority (KRA) has officially responded to mounting concerns over the new Current Retail Selling Price (CRSP) schedule that is set to take effect on July 1, 2025. The taxman defended the changes, emphasizing the necessity to adjust to economic realities and the entry of new car models into the Kenyan market.
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Why the CRSP Was Reviewed
In a statement released on Friday, June 6, KRA explained that the review was long overdue, noting that the last effective update to the CRSP was in 2019. A 2020 attempt to revise the list was blocked in court following opposition from stakeholders, forcing the agency to retain outdated valuations for years.
“There has been a need to review the CRSP in consultation with stakeholders to reflect emerging changes in the sector,” the statement read in part.
What Has Changed Since 2019?
KRA pointed out significant shifts in both macroeconomic indicators and taxation policies:
- The exchange rate has risen from around Ksh100 per US dollar in 2019 to approximately Ksh130 in 2025.
- The import duty rate has increased from 25% to 35%.
- Excise duty on some vehicle units has gone up from a maximum of 30% to 35%.
- More modern and sophisticated car models have entered the market and needed to be reflected in the CRSP list.
Read also:Car Prices to Rise in Kenya from July as KRA Updates CRSP
Stakeholder Consultations
The tax agency assured the public that the CRSP update was not unilateral. It was developed through consultations with key industry players including:
- Kenya Auto Bazaar Association (KABA)
- Car Importers Association of Kenya (CIAK)
- Kenya International Freight Forwarders and Warehousing Association (KIFWA)
How CRSP Affects Car Import Taxes
The CRSP is a base value used to calculate the taxes imposed on imported vehicles. It determines how much duty is paid by applying depreciation based on the vehicle’s age from the year of manufacture or first registration.
For example, a 1.5-litre petrol Mazda Demio will now attract a duty of Ksh467,350, up from Ksh247,109, as a result of the CRSP increasing from Ksh1.67 million to Ksh3.39 million.
When the New CRSP Takes Effect
The updated CRSP list will officially come into force on July 1, 2025, prompting used car importers and prospective vehicle owners to prepare for higher costs in line with the revised tax structure.
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