New CRSP Prices for Imported Cars in Kenya: What You Need to Know in 2025

If you’re planning to import a car into Kenya in 2025, understanding the latest changes in the Current Retail Selling Price (CRSP) is crucial. The Kenya Revenue Authority (KRA) has updated its CRSP valuations, directly impacting the taxes and duties payable on imported vehicles. At Motorplug, we’re here to guide you through these changes to ensure a smooth car importation process
New CRSP Prices for Imported Cars in Kenya: What You Need to Know in 2025

Understanding CRSP and Its Role in Car Importation

The CRSP represents the estimated market value of a vehicle as determined by KRA. It’s a foundational figure used to calculate various taxes and duties on imported cars. The key taxes based on the CRSP include:

  • Import Duty: 25% of the Customs Value (CIF)

  • Excise Duty: 20% or 25% depending on engine capacity

  • Value Added Tax (VAT): 16% of the total of CIF, Import Duty, and Excise Duty

  • Import Declaration Fee (IDF): 3.5% of CIF

  • Railway Development Levy (RDL): 2% of CIF

Note: CIF stands for Cost, Insurance, and Freight

📉 Depreciation Rates Based on Vehicle Age

KRA applies depreciation to the CRSP based on the vehicle’s age to determine its current value:standardmedia.co.ke

  • Vehicles less than 1 year old: 5% depreciation

  • 1 to 2 years old: 10% depreciation

  • 2 to 3 years old: 15% depreciation

  • 3 to 4 years old: 20% depreciation

  • 4 to 5 years old: 30% depreciation

  • 5 to 6 years old: 40% depreciation

  • 6 to 7 years old: 50% depreciation

  • 7 to 8 years old: 60% depreciation

Vehicles older than 8 years are not eligible for importation into Kenya.

💰 Example: Calculating Taxes for a 2017 Toyota Premio

Let’s consider importing a 2017 Toyota Premio with a CRSP of KSh 3,270,000. Assuming a 60% depreciation (as it’s 8 years old in 2025), the calculations would be:citizen.digital+2nairobilawmonthly.com+2the-star.co.ke+2

  • Depreciated Value: KSh 1,308,000

  • Import Duty (25%): KSh 327,000

  • Excise Duty (25%): KSh 408,750

  • VAT (16%): KSh 330,600

  • IDF (3.5%): KSh 45,780

  • RDL (2%): KSh 26,160citizen.digital

Total Taxes and Fees: KSh 1,138,290

Please note that these figures are estimates and actual amounts may vary based on additional factors.

🔄 Transition to Transaction Value Method

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.

🛠 Additional Costs to Consider

Beyond the standard taxes, importers should also budget for:

These additional costs can significantly impact the total expense of importing a vehicle.

✅ Tips for Cost-Effective Car Importation

  • Opt for Vehicles with Smaller Engine Capacities: Cars with engines below 1500cc attract lower excise duties.

  • Import Older Vehicles Within the 8-Year Limit: Older cars have higher depreciation, reducing the taxable value.

  • Stay Informed on KRA Policies: Regularly check for updates on tax regulations and valuation methods.

  • Consult with Experts: Engage with reputable clearing agents and importation consultants to navigate the process efficiently.

📞 Need Assistance?

At Motorplug, we specialize in helping clients navigate the complexities of car importation in Kenya. Our team is ready to assist you with up-to-date information, cost calculations, and end-to-end support.

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