The Kenya Revenue Authority (KRA) has released the new pricing template that will determine import duties for used motor vehicles starting July 1, 2025.

The Current Retail Selling Price (CRSP) has almost doubled the import duty prices for a number of car models and some received a significant reduction.

Looking at some of the popularly purchased cars in Kenya, a Toyota Vitz Hybrid will see its import duty increasing to Ksh.508,927 from Ksh.319,501. 

Similarly, a Mazda Demio (diesel variant) will now cost more after the duty increased from Ksh.244,000 to Ksh.564,000.

A Mazda CX5 (petrol variant), 2L, will have a duty increase from Ksh.721,500 to Ksh.1.07 million.

Duties for Toyota Axio will shoot from Ksh.457,600 to Ksh.539,900, Toyota Fielder (Ksh.362,300 to Ksh.568,500) and Subaru Forester XT (Ksh.669,300 to Ksh.812,100)

Some cars however enjoyed a reduction among them the Lexus Lx570 with a new duty fee of Ksh.3.3 million from Ksh.4.2 million and the Volkswagen Tiguan, 1.4L, with a revised duty of Ksh.Ksh.531,300 from Ksh.652,000.

Citizen Digital has obtained these numbers from a local car dealer.

The new CRSP was designed to include new motor vehicles that were not captured in the 2019 document.

It will also allow KRA to ensure that no car will be undervalued and appropriate tax deductions will be made.

In Kenya, each imported vehicle has a 35% duty charge, excise duty of between 25% and 35%, VAT (16%), Import Declaration Fee (3.5%) and Railway Development Levy (2%).

These five taxes are based on customs value which is based on a depreciation rate of between 10% and 65% of the car. The rate of excise duty depends on engine size and is calculated as customs value and import duty.

Car importers are, however, opposing the new CRSP, arguing that the taxman published the prices without conducting public participation.

This will now force buyers to avoid importing second-hand cars because of the skyrocketing prices.