High Court Suspends CRSP Rollout Amidst Legal Row

On June 30, 2025, the High Court delivered a decisive blow to the Kenya Revenue Authority by suspending the rollout of the newly revised CRSP just hours before its intended launch. The court ruled that the CRSP circular and public notice violated key constitutional principles and statutory obligations.

The court cited lack of public participation, as consultations were limited to select stakeholders, leaving out consumers and key industry voices. It also declared that KRA’s CRSP qualifies as a statutory instrument, which under Kenyan law must be subjected to parliamentary scrutiny—a step the tax authority bypassed.

The court further ruled that the 30-day implementation window was insufficient. Many importers had already made purchases based on the 2019 CRSP, and were now at risk of retroactive penalties under a new system they had no control over. Additionally, serious inconsistencies in the updated CRSP list were highlighted, including omitted vehicle models, misclassified engine types, and unrealistic valuations.

As of now, the entire CRSP update is suspended until at least July 17, 2025, when a full hearing will determine the way forward. In the meantime, the 2019 CRSP remains in effect, giving a temporary reprieve to importers, dealers, and car buyers alike.

Legal Grounds for Suspension

Violation of Public Participation
The court found that KRA allegedly failed to engage meaningfully with the public. While consultations focused on dealers, ordinary consumers and the public were excluded—contradicting constitutional mandates for transparency under Articles 10 and 201

Statutory Instrument Requirements
The updated CRSP, issued by the Commissioners for Customs and Border Control and the Commissioner General, is characterized as a “statutory instrument” under the Statutory Instruments Act and the EAC Customs Act. As such, it should have been laid before Parliament and published per procedural rules—an obligation KRA allegedly did not fulfill

Insufficient Notice Period
The 30-day window provided before implementation was deemed insufficient and unreasonable, especially considering that importers and consumers had placed orders under the 2019 CRSP—creating economic and legal unfairness

Fundamental Flaws in the CRSP List
Court documents highlighted glaring errors: omission of models, misclassification of fuel types and chassis details, inconsistent valuations, and even scenarios where vehicles already en route to Kenya would be unfairly penalized

KRA is considering a shift from the CRSP method to the Transaction Value approach, which bases taxes on the actual price paid for the vehicle. This change aims to align with international standards and could lead to more accurate tax assessments. However, it’s essential to stay updated on this transition as it may affect importation costs.

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