The Kenya Revenue Authority (KRA) has officially released a revised edition of the Current Retail Selling Price (CRSP) schedule for imported vehicles, marking the first major update to the valuation guide since 2019. The new CRSP list will come into effect on July 1, 2025, and is set to significantly impact how taxes on imported used cars are calculated.
This long-awaited update follows years of delays caused by legal battles and stakeholder disagreements, and comes amid shifting economic conditions, including a weakening shilling, higher import duties, and changing market dynamics.
What is the CRSP List and Why It Matters
The CRSP list is a crucial pricing guide that the KRA uses to determine the value of imported vehicles, particularly second-hand units, for purposes of taxation. When a used vehicle arrives at the port of entry, its value is derived from the CRSP of the equivalent new model, adjusted for depreciation based on age and condition.
Taxes—including import duty, excise duty, and VAT—are applied to this adjusted value. As a result, changes to the CRSP list can have a significant impact on the final cost of a car for importers and consumers alike.
Key Highlights of the 2025 CRSP Update
This latest revision of the CRSP reflects several critical changes and trends that have shaped the automotive import landscape over the last six years:
- Over 5,200 vehicle models are now listed, up from approximately 3,000 in the 2019 edition.
- The new list considers detailed vehicle specifications, such as trim levels and performance features, unlike the old model which relied mostly on engine capacity and drivetrain.
- Data for the valuation was sourced from credible automotive databases, particularly Japanese Yearbooks and Goo-net, especially for models that were previously missing in the CRSP system.
- The updated methodology was agreed upon through broad stakeholder consultation, ensuring that the process is transparent and inclusive.
Why the CRSP List Was Not Updated Earlier
The last CRSP review took place in 2019. A proposed update in 2020 was halted by a court case, brought forward by industry players who felt they had not been adequately consulted. Following the legal ruling, KRA was mandated to engage stakeholders comprehensively before making any changes to the list.
In response, KRA held extensive engagement forums with key industry groups, including:
- Kenya Auto Bazaar Association (KABA)
- Car Importers Association of Kenya (CIAK)
- Kenya International Freight Forwarders and Warehousing Association (KIFWA)
A technical committee composed of experts from these organizations, along with KRA officials, was formed to develop a new methodology for vehicle valuation. The agreed framework was finalized in January 2025, laying the foundation for the new CRSP list.
Economic Shifts Behind the CRSP Review
Several economic developments since 2019 made the review of the CRSP list not just necessary, but urgent:
- The Kenyan Shilling has depreciated significantly. In 2019, the dollar exchanged at around KSh 100, but by 2025, it is trading at approximately KSh 130—a 30% drop in value.
- Import duties have increased, from 25% in 2019 to 35% in 2025, contributing to higher overall vehicle landing costs.
- Excise duty, which varies based on engine size and vehicle type, has also increased. Some units now attract up to 35% excise duty, compared to a maximum of 30% in previous years.
These changes make accurate vehicle valuation essential to ensure fairness, eliminate under-declaration, and align customs practices with current realities.
What the New CRSP List Means for Importers
Importers and clearing agents are being urged by KRA to review the updated CRSP list, which is now available on the authority’s official website. Failure to familiarize oneself with the new valuation framework could lead to delays, disputes, or additional costs at the point of clearance.
KRA’s Commissioner for Customs and Border Control emphasized that the CRSP review aims to:
- Enhance fairness by standardizing vehicle valuations
- Improve transparency in tax assessment
- Minimize disputes over customs values
- Reflect true market dynamics
The update is also a key step in aligning Kenya’s vehicle import valuation practices with global standards, particularly those outlined by the World Trade Organization (WTO).
Flexibility and Ongoing Updates
While the 2025 CRSP list is far more comprehensive than its predecessor, KRA acknowledged that some models are still missing. The agency has committed to continuously updating the CRSP database as more vehicle data becomes available. This ensures that emerging models and new market trends are incorporated in a timely manner.
Importers encountering models that are not listed in the CRSP are encouraged to reach out to KRA or provide supporting documents for valuation. This collaborative approach will help maintain the integrity and inclusiveness of the system.
Tax Amnesty Reminder
In a related development, KRA also used the public notice to remind taxpayers of the ongoing tax amnesty program, which remains open during the rollout of the new CRSP schedule.
The tax amnesty presents an opportunity for individuals and businesses with outstanding tax obligations to regularize their compliance status without incurring penalties. This is especially relevant for auto dealers and importers who may have previously under-declared vehicle values or failed to comply with past tax regulations.
Conclusion: A New Era for Vehicle Imports
The 2025 CRSP update represents a landmark shift in how Kenya approaches the valuation and taxation of imported vehicles. By incorporating broader data, technical input from industry stakeholders, and aligning with international best practices, the revised CRSP list is expected to usher in a more predictable and fair import process.
For importers, the message is clear: Review the list, understand the changes, and prepare accordingly ahead of the July 1 implementation date.
This update not only affects importers but also has ripple effects on vehicle prices in the local market, insurance costs, and even financing decisions. As Kenya continues to grow its vehicle market, a fair and transparent tax framework remains key to building trust and compliance.