Nairobi -Faced with a wave of public concern, the Kenya Revenue Authority is standing its ground.
On Friday, the KRA defended its revised valuation system for used imported cars, insisting the update was both timely and fair. Officials said the changes followed wide consultation with key players in Kenya’s auto trade and reflected broader economic shifts since the last overhaul in 2019.
“We’ve not acted in isolation,” the Authority said in a statement. “This new list was shaped by data, economic trends, and direct input from industry stakeholders.”
The revised Current Retail Selling Price (CRSP) list, used to calculate taxes on imported vehicles, will now guide the assessment of more than 5,200 unique models. That’s a steep rise from about 3,000 in the 2019 version. The updated list includes detailed vehicle specifications such as trim levels and performance ratings details that significantly affect a car’s valuation.
The changes come at a time when Kenyan motorists are already feeling the pinch from a weakened shilling and rising import duties.
An economy in flux
Much has changed since the last CRSP list was published. The Kenyan shilling has dropped from around 100 to roughly 130 against the US dollar. Over the same period, import and excise duties have risen from 25 percent to 35 percent compounding the cost of bringing vehicles into the country.
According to the KRA, these shifts made a review unavoidable.
“It was no longer realistic to apply outdated figures from six years ago,” said a senior official at the Authority who requested not to be named discussing internal policy.
KRA’s update also aligns with international customs regulations, including the World Trade Organization’s Agreement on Customs Valuation. Regionally, it follows the East African Community’s legal framework under the EACCMA (2004).
Industry reaction mixed
While KRA maintains that the review was a collaborative effort, reactions from traders have been divided.
The Kenya Auto Bazaar Association and Car Importers Association of Kenya were part of the consultations. Some of their members, however, have raised concerns about the availability of up-to-date data, especially for newer car models not yet listed in Japanese market references like Goo-net or the annual Yearbooks.
“There are still gaps, especially for recent models,” said Peter Otieno, a Nairobi-based car dealer. “We hope those will be filled quickly to avoid delays and disputes at the port.”
KRA acknowledged those concerns, saying the current list isn’t perfect. But they’ve committed to expanding it as more valuation sources are vetted by their technical team.
“We’re not closing the door,” the Authority said. “This is a living document. Updates will continue as new data becomes available.”
A long time coming
The 2025 update comes after years of delays. A 2020 attempt to revise the list was shelved following legal challenges by traders, who argued the process had lacked transparency.
This time, KRA appears to have made a deliberate effort to bring industry voices into the room.
Whether that approach will be enough to win over critics and avoid another round of court battles remains to be seen. But the message from Times Tower is clear: the old system had outlived its time, and change was inevitable.
“We’re doing our part,” the KRA statement said. “Now it’s time for the sector to adapt.”
