New KRA Tax System from July 1, 2025: What It Means for Imported Cars
Kenya Revenue Authority (KRA) is overhauling its Current Retail Selling Price (CRSP) system starting July 1, 2025. This is the first update since 2019 and introduces several key changes: invoice-based valuations, more than 5,200 vehicle models, and age-adjustment to reflect depreciation automag.co.ke+15the-star.co.ke+15tuko.co.ke+15.
- Why update CRSP?
To align valuations with real market prices—considering shipping, insurance, depreciation, exchange rate shifts—and reduce longstanding disputes kenyans.co.ke. - Risks:
Some vehicles may attract up to 145% more tax, squeezing affordable importers and dealers linkedin.com+8facebook.com+8x.com+8.
🚨 Impact on Second-Hand Car Prices
|
Model |
Old CRSP (KES) |
New CRSP (KES) |
Change Δ |
Tax Impact* |
|
Suzuki Swift (1.2L 2018) |
1.0 M |
2.45 M |
+145% |
💥 Substantial |
|
Mazda CX‑5 (2.2L diesel) |
5.4 M |
9.0 M |
+67% |
⚠ High |
|
Toyota Premio 2.0G |
3.44 M |
4.34 M |
+26% |
⚠ Notable |
|
Toyota Vitz Hybrid F |
3.2 M |
3.44 M |
+8% |
Moderate |
|
Nissan Note X (e‑power) |
3.2 M |
3.7 M |
+16% |
⚠ High |
|
Honda Fit Hybrid F |
2.8 M |
2.9 M |
+4% |
Low–Moderate |
|
Toyota Prius S |
5.4 M |
5.7 M |
+6% |
Moderate |
|
Prado TX‑L E4 |
8.7 M |
9.1 M |
+5% |
Moderate |
|
Subaru Outback (2017) |
2.5 M |
2.5 M |
0% |
Neutral |
|
Probox GL |
2.6 M |
2.57 M |
–1% |
Slight drop |
*Tax impact reflects compounded duties, excise, VAT. Data aggregated from KRA and Business Daily estimates linkedin.comautomag.co.ke+8kenyans.co.ke+8the-star.co.ke+8ground.news+6tuko.co.ke+6facebook.com+6the-star.co.ke.
🟢 Models with No Major Tax Hike
These models saw stable or reduced CRSP—making them more attractive:
- Subaru Outback (2017): ≈ KES 2.5 M (0%)
- Probox GL: slightly down ≈ −1%
- Ford Ranger: stable
- Hyundai Tucson: stable
- Toyota RAV4: stable
- Other older Japanese sedans (e.g., Honda Fit non-hybrid): flat prices
📊 What This Means for Buyers
🔹 Prices Are Going Up Fast
Suzuki Swift and Mazda CX‑5 importers face significant cost hikes—up to 145%, drastically inflating import tax bills kra.go.ke+7facebook.com+7the-star.co.ke+7kenyans.co.keinstagram.com+8news.secondstax.com+8tuko.co.ke+8.
🔹 Older & Utility Vehicles Are Better Deals
Age-adjusted valuations favour older models and utility vehicles. For example, Probox GL and Subaru models might now become relatively cheaper options.
🔹 Dealers Will Adjust Prices
Importers already flagging intentions to pass the increase onto buyers, potentially affecting retail prices across many models tuko.co.ke+1the-star.co.ke+1.
🔹 Speed & Timing Matter
Import before July 1 to lock in current tax levels. After that, expect sticker shock—especially for the most affected models.
✅ What You Should Do
- Check Updated CRSP
Visit KRA’s official site to get precise values for your preferred model the-star.co.kelinkedin.com+14kra.go.ke+14the-star.co.ke+14. - Run a Total Cost Estimate
Include CIF value, duties (25–35%), excise, VAT, and CRSP adjustments to project your full landed cost. - Compare Alternatives
If your target model is heavily affected, pivot to models with flat or lower CRSP values. - Consider Financing
With increased upfront costs, a logbook loan can unlock up to 80% of your car’s value, covering tax shortfalls within 24–48 hours—helping you beat deadlines and avoid auction risks. - Negotiate Early
Ensure importers factor the new tax into quotes ahead of July. Transparency can prevent overpricing.
🧭 Bottom Line
The new CRSP system makes car import taxes fairer—but comes with massive price increases on some popular models. By acting fast, choosing wisely, and using financing strategically, you can still bring your dream ride home affordably.
Remember!
If the new import duty changes are stretching your budget, don’t sweat it #KifedhaGotYou, reach out to us and let’s help you bridge the gap
Contact us through our contact form, call us on +254791573231 or visit one of our branches across Nairobi, Kiambu, Machakos, and Kajiado counties to explore your financial opportunities
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