The Kenya Revenue Authority (KRA) has defended its newly introduced pricing template for calculating taxes on imported vehicles, which has led to a significant rise in import duty costs for many popular car models. The new framework, based on a revised Current Retail Selling Price (CRSP), will take effect on July 1, 2025.
According to KRA, the review was necessary to reflect changes in the automotive sector and broader economic shifts that have occurred since the last update in 2019. The new CRSP accounts for the introduction of newer vehicle models, rising exchange rates, and increased tax rates, among other variables.
“For example, in 2019, the exchange rate was approximately Ksh.100 to the US dollar, compared to about Ksh.130 in 2025,” KRA stated. “Import duty has risen from 25% to 35%, while excise duty for some units now stands at 35%, up from a maximum of 30% in 2019.”
Under the new pricing structure, import duties for various models have increased substantially. A Toyota Vitz Hybrid will now attract a duty of Ksh.508,927, up from Ksh.319,501, while the diesel variant of the Mazda Demio will see a jump from Ksh.244,000 to Ksh.564,000.
Local car dealers have raised concerns over the expected impact on vehicle prices, particularly for commonly imported models. However, KRA insists the updated template is the result of extensive consultations, including public participation and stakeholder engagement.
“The new CRSP is a product of a comprehensive consultative process,” KRA emphasized, noting that the revised list includes over 5,200 unique car models, an increase from 3,000 in 2019. The updated template also takes into account detailed model specifications such as trim levels and performance features, unlike the previous version which focused primarily on engine size and drive configuration.
KRA further committed to updating the list regularly to include new models not yet captured in Japanese Yearbooks or online platforms like Goo-net.
“We remain committed to a transparent and collaborative valuation process that aligns with current market conditions and regulatory requirements,” the tax authority concluded.
Written By Rodney Mbua
