Vehicles To Be More Expensive in Kenya After New Law Takes Effect, KRA Confirms

(Photo Courtesy: Vehicles) 

The Kenya Revenue Authority (KRA) has officially announced that vehicle prices in Kenya will rise significantly from 1st July 2025. 

This is due to the implementation of the new Finance Act 2024, which introduces a fresh tax calculation method based on the Current Retail Selling Price (CRSP) system.

Under the updated CRSP system, taxes on imported vehicles will now be determined using the current market price of each car model, instead of the older, lower valuation estimates. 

This shift will result in higher import duty and excise duty for most used vehicles, directly affecting car importers and everyday buyers across the country.

KRA confirmed that the import duty has increased from 25% in 2019 to 35% in 2025. Additionally, excise duty for some models has jumped to 35%, up from a previous maximum of 30%. 

This means that importing cars into Kenya will become more costly, making new and used cars less affordable for many Kenyans.

The revised CRSP list now includes over 5,200 vehicle models—up from 3,000 models in 2019. Some models are yet to be included due to limited data, but KRA has promised regular updates. 

These changes align with global tax rules under the World Trade Organisation and are enforced through the East African Community Customs Management Act, 2004.

Examples from the updated list include:

Toyota Vitz Hybrid F – Ksh3.44 million

Mazda CX-5 20S – Ksh6.83 million

Toyota Prado TX-L-E4 – Ksh9.09 million

KRA says the new law is aimed at boosting tax fairness and improving transparency in vehicle importation.

For more Kenyan car tax updates, stay tuned to Urban Pulse Kenya — your trusted source for trending news and consumer insights.

SOURCE