Introduction
Kenya’s import market is set for a significant update. Starting July 1, 2025, the Kenya Revenue Authority (KRA) will enforce a new vehicle import valuation schedule (Current Retail Selling Price or CRSP) that will affect duty rates on imported vehicles. This change is expected to increase the cost of imported used cars and impact buyers, dealers, and exporters alike. Understanding these changes is critical for anyone involved in vehicle imports.
What Is Changing?
The KRA has announced a revised CRSP list that sets higher base prices for various models of imported vehicles. This revision affects:
- Import Duty
- Excise Duty
- VAT (Value-Added Tax)
- Import Declaration Fee (IDF)
The changes mean that duties and taxes calculated on higher vehicle values will increase the overall cost of importing vehicles into Kenya.
What It Means for Buyers and Dealers?
- Higher Costs: Vehicle import costs will rise starting July 1st, 2025.
- Urgency to Purchase: Buyers who complete their purchase and shipping before the deadline may still benefit from the current, lower duty rates.
- Potential Stock Shortages: Dealers may experience increased demand and possible inventory shortages as buyers rush to beat the new rates.
What You Can Do Now?
- Buy Early: Secure your vehicle before July 1st to avoid paying higher duties.
- Ship Promptly: Coordinate shipping schedules to ensure your vehicle arrives before the deadline.
- Stay Updated: Follow official announcements from KRA and consult your exporter or clearing agent for precise costs.
Final Thoughts
The upcoming duty hike is official and will reshape Kenya’s vehicle import market. Early action can save you significant costs. For anyone planning to import a vehicle into Kenya, this is the best time to act.
Disclaimer
This blog summarizes the official announcements as of June 2025. Prices and duties will vary by vehicle type and other factors. Always verify with KRA or a licensed clearing agent for the most accurate information.
Citations:
- “KRA clarifies new car valuation formula ahead of July rollout,” The Star, June 6, 2025.
https://www.the-star.co.ke/news/2025-06-06-kra-clarifies-new-car-valuation-formula-ahead-of-july-rollout - “KRA sets new CRSP for imported used cars effective July 1, 2025,” Kenyans.co.ke, May 30, 2025.
https://www.kenyans.co.ke/news/112632-kra-sets-new-crsp-imported-used-cars-effective-july-1-2025