The Kenya Revenue Authority (KRA) has clarified the rationale behind its decision to revise the Current Retail Selling Price (CRSP) of motor vehicles, a move that is set to significantly affect import taxes on various car models starting July 1, 2025.
In a statement, the tax agency said the updated CRSP framework reflects economic shifts and structural changes in the automotive sector, including the entry of newer car models and changes in taxation rates and exchange rates. This marks the first major update to the pricing template since 2019.
Under the new structure, taxes on some imported vehicles have nearly doubled. For example, the import duty on a Toyota Vitz Hybrid has increased from Ksh.319,501 to Ksh.508,927, while the duty for a Mazda Demio diesel variant will rise from Ksh.244,000 to Ksh.564,000.
Local dealers have warned that the new rates will lead to significantly higher import duties on popular car models, potentially impacting affordability for ordinary Kenyans.
The Taxman attributed the sharp rise to multiple factors, including the depreciation of the Kenyan shilling, and adjustments in import and excise duties.
“In 2019, the exchange rate stood at about Ksh.100 to the US dollar. In 2025, it has risen to around Ksh.130,” KRA noted. “At the same time, the import duty rate has increased from 25 per cent to 35 per cent, while excise duty for some vehicles now stands at 35 per cent—up from a maximum of 30 per cent in 2019.”
The new CRSP also includes thousands of additional vehicle models and detailed specifications such as trim levels and performance features. The revised list now features more than 5,200 unique car models, up from 3,000 in the previous version.
KRA said it developed the pricing guide through broad consultations, incorporating feedback from stakeholders and the public.
“This updated CRSP is the result of a comprehensive consultative process that took into account stakeholder feedback, emerging industry trends and current economic conditions,” the authority said.
It added that the pricing review aims to enhance transparency and fairness in tax valuation, and that the list will be updated continuously to include new models not listed in the Japanese Yearbooks or on Goo-net.
KRA has reaffirmed its commitment to ensuring a balanced approach in the valuation process, saying it will continue engaging stakeholders to align policy decisions with economic realities.
