KRA defends new car sell protocol citing stakeholder involvement

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NAIROBI, Kenya, June 6 — The Kenya Revenue Authority (KRA) has defended the rollout of its newly revised Current Retail Selling Price (CRSP) list for used motor vehicles, citing a rigorous and consultative validation process that included extensive stakeholder engagement and updated valuation data.In a statement on Friday, KRA emphasized that the updated CRSP—its first major revision since 2019—was developed through a transparent process involving key industry players such as the Kenya Auto Bazaar Association, the Car Importers Association of Kenya, and other stakeholders.“The new CRSP list is a product of a transparent, consultative process. We’ve integrated stakeholder feedback and updated valuation data sources to ensure a more accurate and inclusive system,” the Authority said.The taxman explained that the revised CRSP reflects significant shifts in Kenya’s automotive and economic landscape, including the depreciation of the Kenyan shilling, increased duty rates, and the entry of new vehicle models into the market.The CRSP is a key determinant in assessing taxes on imported used vehicles. Its revision follows years of lobbying and was delayed in 2020 after court challenges blocked an earlier attempt.KRA noted that the new list is anchored in international and regional legal frameworks, including the World Trade Organization (WTO) Agreement on Customs Valuation, domesticated under the East African Community Customs Management Act (EACCMA), 2004.Timely shift The Authority attributed the timing of the update to several macroeconomic changes. Since 2019, the Kenyan shilling has weakened from Sh100 to about Sh130 per US dollar, while import and excise duties have risen from 25 per cent to 35 per cent.The 2025 CRSP list features more than 5,200 unique vehicle models—up from 3,000 in 2019—and includes detailed specifications such as trim levels and performance features, offering a more refined basis for taxation.KRA acknowledged that some newer models are currently missing from the list due to data limitations in sources like the Japanese Yearbooks and Goo-net. However, KRA assured stakeholders that efforts are underway to expand the list further once additional data sources are approved by its technical team.