Kenya Revenue Authority has announced an increase of taxes on imported second-hand cars effective next month, a move that has triggered panic among potential buyers.
Local Kenyan press quoted KRA on Monday saying that taxes on the imported used cars are scheduled to be increased by 145% in July as the Kenya Revenue Authority moves to upgrade the prices of new units on which taxation of new models is based.
Small cars like Suzuki swift, Mazda Demio and Toyota Vitz which have become more popular due to their fuel efficiency and used in Tax business will attract the biggest percentage increase in taxes.
Some car models may attract higher or lower taxes depending on how their new retail prices are adjusted.
“The Kenya Revenue Authority (KRA) wishes to inform the public that, effective 1st July, 2025, a new Current Retail Selling Price (CRSP) schedule will be applied in the computation of customs value for used motor vehicles imported into the country,” accordingto the KRA notice dated 30th May.
In Kenya, used car imports are a significant part of the automotive market, with a strong focus on Japanese used cars.
These imports are popular due to their affordability and variety.
The import process involves several steps, including inspection, registration, and duty payments.
The Current Retail Selling Price (CRSP) is a value used by KRA to determine the customs value of imported used cars.
This customs value is then used to calculate the amount of import duty, VAT, excise duty, and other taxes that an importer must pay.
Kenya Revenue Authority uses the CRSP to estimate the cost of a specific make and model of car if sold new in Kenya.
Even though you’re importing a used car, your taxes are based on this estimated retail price, not what you paid for the car abroad.