NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has revised the valuation method used to calculate taxes on imported used cars, replacing the long-standing flat-rate pricing system with one based on actual purchase prices.
In a public notice, KRA announced that the updated Current Retail Selling Price (CRSP) schedule has been published on its website, and will now guide customs valuation of used vehicles entering the country.
The shift follows what the tax agency described as “extensive consultations” with stakeholders in the automotive and logistics sectors.
The CRSP forms the basis on which import duty, VAT, excise duty, and other levies on second-hand vehicles are calculated.
Unlike the previous approach, which used fixed retail prices for various car models, the revised framework allows for valuations based on actual invoice prices, adjusted for depreciation.
“This move is expected to make tax assessments more transparent and equitable,” the authority said, adding that the new system better reflects market dynamics and the true value of imported vehicles.
Importers and clearing agents have been urged to familiarise themselves with the changes ahead of the implementation, which is expected to affect import planning and pricing across the board.
According to the revised CRSP list, bringing in a Toyota Vitz Hybrid F will now be valued at Sh3,440,622, while a Mazda CX-5 20S will be taxed based on a customs value of Sh6,839,016.
While this shift is aimed at fairness, industry insiders say it could also result in higher valuations — and therefore taxes — for newer or more in-demand models.
However, older vehicles may now attract lower taxes, in line with their depreciated value.
KRA’s Commissioner for Customs and Border Control emphasized the importance of compliance, noting that the reforms are part of broader efforts to improve tax administration and seal revenue leaks in the import sector.
In the same breath, the authority reminded taxpayers of an ongoing tax amnesty window, urging eligible individuals and businesses to take advantage before the offer lapses.
