The Kenya Revenue Authority has defended the move to revise the Current Retail Selling Price (CRSP) list for new motor vehicles.
In a statement issued on Friday, June 6, the taxman explained that the revision has to be done to factor in new vehicle models and also adjust prices of vehicles based on the recent economic developments, such as the exchange rate.
According to the KRA, this is the first time the list has been reviewed since 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.
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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 Kshs. 100 to the US dollar, while in 2025 it stands at around Kshs. 130. Additionally, the import duty rate, which is a key factor in the CRSP, has increased from 25% in 2019 to 35% in 2025," KRA explained.
"The excise duty rate for some units has also risen to 35%, compared to a maximum of 30% 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 list is set to take effect on July 1.
What is CRSP?
This 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.
The new list has seen stakeholders in the motor vehicle industry raise concerns over the looming price increase for some vehicles.
For instance, the tax on a 1.5-litre petrol-powered Mazda Demio is set to rise to Ksh467,350, up from Ksh247,109. This is after KRA increased the car's CRSP from Ksh1.67 million to Ksh3.39 million.
