KRA defends new pricing template that raises car import duty costs

Beginning July 1, 2025, KRA will implement a revised CRSP framework, which has almost doubled the import duty prices for several car models, while some have received a significant reduction.

According to local dealers, the new pricing framework will lead to higher import duties for popular car models.

For instance, the import duty for a Toyota Vitz Hybrid has risen from Ksh.319,501 to Ksh.508,927. 

Similarly, the duty on the diesel variant of a Mazda Demio will increase from Ksh.244,000 to Ksh.564,000.

In a statement, the taxman explained that this year's revision of the CRSP was occasioned by the need to reflect the emerging changes in the sector as the pricing had not been updated since 2019.

This includes the introduction of new vehicle models, prevailing economic conditions and changes in key variables such as exchange rates, import duty and excise duty. 

"For example, in 2019, the exchange rate was approximately Ksh.100 to the US dollar, while in 2025 it stands at around Ksh.130. Additionally, the import duty rate, which is a key factor in the CRSP, has increased from 25 per cent in 2019 to 35 per cent in 2025," the statement read in part. 

"The excise duty rate for some units has also risen to 35 per cent, 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." 

The process of reviewing the CRSP involved holding various stakeholder engagements and inviting the public to submit comments on the matter. 

"The new CRSP is, therefore, a product of a comprehensive consultative process in which stakeholder input was considered."

To come up with the new pricing list, KRA incorporated detailed model specifications based on trim levels and vehicle performance, a stark contrast to the 2019 CRSP, which only relied on engine capacity and drive configuration. 

Further, the new list comprises more than 5,200 unique car models as compared to the previous list, which had 3,000 models.

Despite this expansion, KRA reaffirmed to continuously update the list to incorporate upcoming models that are not found in either the Japanese Yearbooks or Goo-net. 

"KRA reaffirms its commitment to a transparent and collaborative valuation process that balances regulatory compliance, stakeholder input, as well as the prevailing economic realities," said KRA.