The Kenya Revenue Authority (KRA) will publish a new valuation template for taxing imported second-hand cars by July 2025. The move follows mounting concerns from dealers over inflated duties and outdated valuation methods.
KRA is reviewing the 2019 Current Retail Selling Price (CRSP) schedule with help from industry stakeholders to include newer models and global best practices.
“The review of the entire valuation database for used motor vehicles is ongoing… this process is expected to be finalised by July 2025,” KRA told Business Daily.
The CRSP determines taxes based on the value of a brand-new vehicle in Kenya, adjusted for depreciation, profit margins, and taxes paid. The updated database will lead to adjusted duty—either higher or lower—based on a vehicle’s current market value.
Currently, KRA uses pricing data from identical or similar vehicles to determine duty on newer models not listed in the 2019 CRSP. Dealers argue this results in inflated taxes, citing examples like higher duty on a Honda compared to a Mercedes Benz.
Car dealers have also challenged the CRSP 2019 in court, citing lack of public participation. The court ruled it unconstitutional.
The new CRSP is being revised by a team that includes KRA officials, Kenya International Freight and Warehousing Association, Car Importers Association of Kenya, Kenya Auto Bazaar Association, and new vehicle dealers.
Dealers highlighted models like the Mazda CX3 (2,000cc petrol), saying they attract unfair duty due to their absence in the 2019 CRSP.
Most cars in Kenya are imported second-hand units, meaning the new valuation template will have a significant economic impact.