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- KRA clarifies implementation of revised CRSP list for used Vehicles
KRA is set to revise the Current Retail Selling Price (CRSP) list for new motor vehicles, marking the first update since 2019.
This adjustment aims to standardize values and ensure predictability and transparency within the industry, reflecting market developments, new vehicle models, economic conditions, changes in exchange rates, import duty, and excise duty.
“The CRSP, which is typically reviewed and updated periodically, plays a key role in determining the applicable taxes on imported vehicles,” KRA said.
Legal Basis of Customs Valuation
KRA clarifies that Customs valuation is based on the World Trade Organization (WTO) Agreement, which has been domesticated under Section 122 and the Fourth Schedule of the East African Community Customs Management Act (EACCMA), 2004.
The Authority noted that the customs value of a used motor vehicle is calculated by applying depreciation to the CRSP, based on the number of years since the date of manufacture or the year of first registration.
“Following the adoption of the WTO Agreement on Customs Valuation,KRA in consultation with stakeholders, agreed to use the CRSP method to address challenges encountered in valuing used motor vehicles,” read part of the statement.
KRA also emphasized that CRSP would be reviewed periodically to reflect changes in the economic environment, including exchange rate fluctuations, inflation, the introduction of newer vehicle models, and changes in tax rates, among other factors.
Why the Review of the Current CRSP?
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.
“For example, in 2019, the exchange rate was approximately sh100 to the US dollar, while in 2025 it stands at around sh130,” KRA noted.
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.
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.
Process of Reviewing the CRSP
In compliance with a court order, KRA held various stakeholder engagements on the valuation methodology for used motor vehicles.
These sessions included representatives from motor vehicle dealers and importers.
The Authority also invited the public to submit comments on the matter.
During the engagements, KRA said that stakeholders expressed opposition to the use of FOB (invoice) values and preferred the continued use of the CRSP.
A working team was constituted comprising representatives from the Kenya Auto Bazaar Association (KABA), Car Importers Association of Kenya (CIAK), Kenya International Freight Forwarders & Warehousing Association (KIFWA), and the Customs & Border Control Department to review the CRSP list.
At a joint technical meeting held on January 29, 2025, the team set out the Terms of Reference (TORs), agreed on the data sources (primarily Japanese Yearbooks), and defined the methodology and timelines for the review, KRA said.
KRA noted that some models were not listed in the Japanese Yearbooks, and it was therefore agreed to supplement the data using Goo-net for any missing models.
A validation meeting was held in May 2025, where the draft list was reviewed and further input from stakeholders received and incorporated.
The new CRSP is, therefore, a product of a comprehensive consultative process in which stakeholder input was
considered.
The source data used to generate the 2025 CRSP list includes detailed model specifications based on trim levels and vehicle performance.
This therefore had an impact on the price of the specific models.
“In contrast, the 2019 CRSP relied more generally on engine capacity and drive configuration. It is important to note the new list has more than 5200 unique models as compared to the 2019 list, which had about 3000 models,” KRA said.
Despite this expansion, some models are missing from the 2025 list because they were not found in either the Japanese Yearbooks or Goo-net.
“Once the technical team agrees on additional data sources, the list will be continuously updated and made available on the KRA website,” the Authority noted.
