The Kenya Revenue Authority has come out to explain why it revised the Current Retail Selling Price (CRSP) list for new motor vehicles, a move which has almost doubled the import duty prices for several car models, while some have received a significant reduction.

CRSP is the standard price that is used to calculate the taxes for vehicles, which is done by applying depreciation to the CRSP, based on the number of years since the date of manufacture or the year of first registration.

Stakeholders in the motor vehicle industry have raised concerns over the looming price increase for some popular car models. For example, the tax on a 1.5-litre petrol-powered Mazda Demio is set to rise to KES467,350, up from KES247,109. 

This is after KRA increased the car's CRSP from KES1.67 million to KES 3.39 million. At the same time, the import duty for a Toyota Vitz Hybrid has risen from KES319,501 to KES508,927.

In a statement on Friday, the taxman said the revision adjusted prices of the target vehicles based on the recent economic developments such as the exchange rate. The last review was in 2019.

"In 2020, the Authority’s attempt to review the CRSP was contested by stakeholders in court. As a result, the current list has remained unchanged since 2019. There has therefore been a need to review the CRSP in consultation with stakeholders to reflect emerging changes in the sector," read the statement in part.

Additionally, KRA indicated that there had been some changes in taxation, and those adjustments needed to be accounted for in the list.

"For example, in 2019, the exchange rate was approximately KES100 to the USD, while in 2025 it stands at around KES130. Additionally, the import duty rate, which is a key factor in the CRSP, has increased from 25 percent in 2019 to 35 percent in 2025," KRA explained.

According to the taxman, the excise duty rate for some units has also risen to 35 percent, compared to a maximum of 30 percent in 2019. Furthermore, many new and more advanced vehicle models have entered the market, which are not included in the 2019 CRSP.

KRA added that the new price list was drafted after consultations with stakeholders, including the Kenya Auto Bazaar Association (KABA), Car Importers Association of Kenya (CIAK), Kenya International Freight Forwarders and Warehousing Association (KIFWA).

"The new CRSP is, therefore, a product of a comprehensive consultative process in which stakeholder input was considered." The new list comprises more than 5,200 unique car models as compared to the previous list, which had 3,000 models and is set to take effect on July 1.

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