NAIROBI, Kenya – The High Court has issued temporary orders suspending the implementation of the Kenya Revenue Authority’s (KRA) revised Current Retail Selling Price (CRSP) schedule for used motor vehicles, just a day before it was set to take effect.
In a ruling delivered on Monday, the court certified the petition as urgent and stayed both the KRA circular dated May 22, 2025, and a public notice published on May 30.
The suspension will remain in effect until July 17, 2025, pending the hearing and determination of the petition challenging the legality of the new valuation guide.
The petitioner argues that the CRSP update, which directly affects how import duties on second-hand vehicles are calculated, was introduced without adequate public participation, as required by Articles 10 and 201 of the Constitution.
While KRA claims to have engaged stakeholders, the petition asserts that only car dealers were consulted, excluding key groups such as consumers and the general public.
The court has been asked to compel the tax agency to disclose the identities of those consulted and the nature of the consultation process.
Further, the petitioner says the revised CRSP constitutes a statutory instrument under the Statutory Instruments Act and should therefore have been tabled before Parliament in accordance with Article 94(6) of the Constitution—something the KRA allegedly failed to do.
Another point of contention is the 30-day notice period given for implementation, which the petitioner calls unreasonable and contrary to Article 47 on fair administrative action.
“The notice fails to consider the legitimate expectations of vehicle importers and consumers who had already committed to transactions under the 2019 CRSP framework,” court papers argue.
The petition highlights that a typical vehicle import process—from procurement to shipping and clearance—takes between three to six months.
The court filing also points out “fundamental errors and omissions” in the revised CRSP, including mislabelled car models, incorrect fuel types, and inconsistent valuations.
Some vehicle models were entirely excluded, while others were reportedly assigned arbitrary values, potentially exposing importers to unfair taxation.
“Some of these vehicles are already on the high seas en route to Kenya. The CRSP in its current form is too flawed to serve as a reliable tax base,” reads part of the petition.
KRA had cited the need to update the CRSP schedule for alignment with market trends and revenue collection objectives. The authority is yet to formally respond to the petition.
The court has directed that all related pleadings be served on the respondents, setting the stage for a full hearing later this month.
