The High Court of Kenya has issued a temporary injunction suspending the implementation of the revised Current Retail Selling Price (CRSP) schedule for used motor vehicles. The Kenya Revenue Authority (KRA) had intended to roll out the updated CRSP list starting July 1, 2025, significantly altering how taxes on imported second-hand vehicles are calculated.
In an interim order issued on Monday, June 30, the court ruled that the matter be certified as urgent, effectively halting the tax changes until the case is fully heard and determined. A hearing has been scheduled for July 17, 2025.
What Is the CRSP and Why It Matters
The Current Retail Selling Price (CRSP) schedule is a standardized pricing list published by the KRA. It is used to determine the customs value of imported second-hand vehicles. The CRSP directly affects how much import duty, excise tax, VAT, and Railway Development Levy are paid on used car imports.
KRA updates the CRSP periodically to reflect market trends, inflation, and exchange rate movements. Importers are taxed based on the CRSP value, not the actual price paid for the vehicle overseas.
This system has long been criticized by car dealers and importers, who argue that it leads to overvaluation of older vehicles and an increase in overall import taxes, costs that are ultimately passed on to consumers.
Petition: No Public Participation
The latest legal challenge was brought forward by an unnamed petitioner, who argued that the new CRSP schedule was introduced without public participation, in contravention of the Kenyan Constitution.
The petitioner cited violations of Article 10 and Article 201, which enshrine principles of inclusivity, transparency, and accountability in legislative and public finance decisions.
“The introduction of the revised CRSP list failed to involve stakeholders such as car importers, dealers, and the public,” the petitioner argued. “This violates constitutional mandates requiring public engagement on matters of financial and legislative significance.”
The court agreed to temporarily freeze the implementation until the case is fully reviewed, recognizing the potential for irreparable harm should the schedule be implemented prematurely.
KRA’s Announcement and Industry Backlash
KRA had announced on May 30, 2025, that the revised CRSP would take effect from July 1, sparking widespread concern among importers and used car dealers. The taxman said the move was intended to align vehicle valuations with prevailing market realities.
Industry stakeholders, however, argued that the updated values were arbitrary and inflated, claiming they would make foreign used vehicles unaffordable for ordinary Kenyans. The Kenya Auto Bazaar Association and other dealer networks began mobilizing to challenge the decision.
“The proposed CRSP figures do not reflect real-world market prices,” said one Nairobi-based car importer. “They will increase the final cost of vehicles by up to 30%, making cars unaffordable for the middle and lower-income buyer.”
Impact on Used Car Market and Consumers
Kenya’s second-hand vehicle market is massive, accounting for over 85% of all car sales in the country. Most Kenyans rely on imported Japanese, UK, and South African vehicles due to their affordability and durability.
If the CRSP revision had proceeded as planned, it would have:
- Raised import duties and VAT, pushing up car prices
- Reduced overall vehicle imports, affecting port activity and dealer income
- Shrunk consumer purchasing power, especially among middle-class car buyers
- Strained financing deals, as banks assess vehicles based on customs values
With the court suspension in place, importers have a temporary reprieve, though uncertainty still looms.
What Happens Next?
The case is set for a full hearing on July 17, 2025, where both KRA and the petitioner will present their arguments. The court will then determine whether the CRSP schedule was constitutionally introduced, and whether the implementation should be permanently blocked, modified, or allowed to proceed.
In the meantime, importers will continue using the previous CRSP list, which remains in force until a ruling is made.
KRA is yet to issue a public response to the High Court’s decision, though legal observers expect it to argue that the new schedule was part of its mandate to enforce tax policy and adjust for economic variables such as depreciation and exchange rates.
Key Takeaways
- The High Court of Kenya has temporarily suspended the rollout of KRA’s revised Current Retail Selling Price (CRSP) schedule for used cars.
- The new CRSP list was scheduled to take effect on July 1, 2025, but will now remain frozen until at least July 17, when the case will be heard.
- The petitioner argues that the tax adjustment was made without public participation, in violation of Articles 10 and 201 of the Constitution.
- The decision provides relief for importers and car buyers, who faced potential tax increases of up to 30% on used vehicles.
- The ruling also raises questions about how government agencies engage stakeholders in decisions that significantly affect the economy and consumer costs.