Car importers in Kenya are facing fresh challenges after the Kenya Revenue Authority (KRA) released a revised Current Retail Selling Price (CRSP) schedule that significantly raises import duties on many used vehicles. The new rates, effective from July 1, 2025, are expected to push car prices higher, potentially altering buying trends in the country’s second-hand vehicle market.
Under the new pricing template, import duties for several popular models have nearly doubled. For instance, the duty on a Toyota Vitz Hybrid will rise from Ksh.319,501 to Ksh.508,927. A Mazda Demio (diesel variant) will now attract a duty of Ksh.564,000, up from Ksh.244,000, pushing its overall cost to approximately Ksh.3.8 million.
Other models affected include:
- Mazda CX-5 (2L petrol): Duty increases from Ksh.721,500 to Ksh.1.07 million
- Toyota Axio: From Ksh.457,600 to Ksh.539,900
- Toyota Fielder: From Ksh.362,300 to Ksh.568,500
- Subaru Forester XT: From Ksh.669,300 to Ksh.812,100
However, a few models have seen duty reductions. The Lexus LX570 now has a revised duty of Ksh.3.3 million, down from Ksh.4.2 million, while the Volkswagen Tiguan (1.4L) drops from Ksh.652,000 to Ksh.531,300.
According to Citizen Digital, which sourced the data from a local car dealer, the updated CRSP includes newer car models not covered in the previous 2019 document. KRA says the revision is aimed at curbing undervaluation and ensuring appropriate taxation.
In Kenya, imported vehicles attract multiple taxes: a 35% import duty, excise duty (25%–35%), VAT (16%), Import Declaration Fee (3.5%), and Railway Development Levy (2%). These are applied on a customs value calculated based on a vehicle’s age and depreciation.
The move has drawn criticism from importers who argue that the KRA implemented the changes without adequate public consultation. They warn that the sharp increase in prices may discourage buyers from importing used vehicles altogether.
With the July deadline approaching, the new tax regime is likely to reshape the dynamics of Kenya’s vibrant second-hand car market.
Written By Rodney Mbua
