Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.

The High Court has temporarily halted the implementation of a new pricing schedule published by the Kenya Revenue Authority (KRA).

KRA had announced that the updated Current Retail Selling Price (CRSP) would take effect from July 1.

The CRSP is used by the tax authority as the base price for calculating taxes on imported second-hand vehicles.

The new directive would have significantly raised the tax burden on popular vehicle models such as the Toyota Vitz, Mazda Demio, and Suzuki Swift. In some cases, total taxes were projected to more than double.

Justice Joe Omido, sitting in Kisumu, granted temporary orders suspending the CRSP update until July 17, 2025, pending the hearing of a petition filed by public interest litigant Elizabeth Akinyi.

According to a report by the Business Daily, Akinyi, through her lawyer, Jackson Awele, argued that the new pricing regime was introduced without adequate public consultation, in breach of constitutional requirements under Articles 118 and 201(a) mandating citizen involvement in legislative and public finance decisions.

According to Akinyi, KRA’s engagement process only involved car dealers, excluding key stakeholders such as importers, consumers, and civil society groups.

She labelled the move arbitrary and whimsical, citing the lack of notice and the disruption it could cause to importers who had already made vehicle purchases based on previous pricing guidelines.

Earlier, KRA explained that the updated valuation schedule in 2025 is the first revision since the 2019 review and is intended to enhance tax assessments on imported vehicles.

On June 6, 2025, the tax authority stated that the adjustment accounts for evolving market dynamics, including the emergence of new car models and current economic trends, including shifts in exchange rates, import duties, and excise duties.

KRA explained that the customs value of used vehicles is determined by depreciating the Current Retail Selling Price (CRSP), factoring in the vehicle's age from its manufacture date or first registration year.

The authority also emphasised that the CRSP will undergo periodic updates to align with economic changes, such as currency fluctuations, inflation, new vehicle releases, and adjustments in tax policies.

Source: TUKO.co.ke