- The Kenya Revenue Authority (KRA) has implemented a revised tax schedule for calculating duties on imported used cars.
- The KRA stated that the revised timetable will commence on July 1, 2025, following comprehensive consultations with stakeholders.
- In an exclusive interview with Diwida.co.ke, car dealer Joseph Kairu Wambui observed a significant rise in the prices of imported used cars once the new regulations come into play.
Wycliffe Musalia boasts more than six years of expertise in areas such as finance, business, technology, climate, and health reporting. His work offers significant understanding of both Kenyan and international economic patterns. Presently, he serves as a business editor. Diwida |.co.ke .
Soon, Kenyans might have to delve deeper into their wallets when purchasing second-hand imported cars.
The Kenya Revenue Authority (KRA) has introduced modifications to the Current Retail Selling Price (CRSP) schedule utilized for calculating customs values.
What is the updated timetable for second-hand vehicles that have been imported?
Lilian Nyawanda, the KRA Commissioner responsible for Customs and Border Control, stated that the updated tariff schedule will come into force on July 1, 2025.
The Kenya Revenue Authority (KRA) has announced that starting July 1, 2025, they will implement a revised Current Retail Selling Price (CRSP) schedule for calculating the customs value of second-hand cars being brought into the nation, as stated by Nyawanda in an announcement made available on Friday, May 30.
Nyawanda stated that the revised schedules were created after thorough consultations with various stakeholders.
Could the updated tax schedule influence vehicle pricing?
During an exclusive interview with Diwida |.co.ke The car dealership owner Joseph Kairu Wambui, widely recognized as Khalif Kairo, pointed out that the revised timetables will likely drive up costs for used import cars.
Kairo pointed out that raising the customs value would increase taxes, which might force importers and dealers to recuperate additional expenses via higher selling prices.
"Higher taxes represent additional expenses for importers and dealers, which they may choose to transfer to customers. As a result, car prices are certain to rise," stated Kairo.
What are the updated tariff regulations for importing second-hand vehicles?
The authorities stated that the updated Current Retail Selling Price (CRSP) schedule can be found on their website and urged importers along with other involved parties to review it thoroughly.
The CRSP for popular models such as the Nissan Note X E-Power will be KSh 3.2 million, the Nissan Note X will cost KSh 3.7 million, and the Honda Fit Hybrid F will have a price of KSh 2.9 million.
Toyota manufactures vehicles such as the Toyota Passo Moda ( priced at KSh 2.6 million ), the Toyota Prius S ( valued at KSh 5.7 million ), and the Toyota Vitz F ( costing KSh 3.4 million ).
Pre-owned vehicle costs in Kenya
Following the strengthening of the shilling, second-hand car prices in Kenya have remained low.
In 2024, the cost of second-hand imports decreased as dealers reported higher sales volumes.
The price of a pre-owned Subaru Outback 2017 has decreased to KSh 2.5 million from KSh 3 million, whereas the cost of a Nissan Note has fallen from KSh 1 million to KSh 850,000.
Similar models such as the Mercedes-Benz C200 have seen their prices fall from KSh 3.5 million down to KSh 3 million, indicating a reduction of KSh 500,000.