Published on 04/06/2025
Unveiling the new Current Retail Selling Price (CRSP) that will see taxes on small engine vehicles rise by over Ksh150,000. We also explain why you could soon be paying more for rice.
Situational Awareness: The National Treasury has announced that CS John Mbadi will read the Budget Statement for the FY 2025/26 on Thursday, June 12, 2025, from 3:00 p.m. in Parliament.
More Taxes for Car Buyers
Kenyans are set to pay more in taxes after the taxman published the Current Retail Selling Price (CRSP) for vehicles.
According to the Business Daily, taxes on some imports will rise by as high as 145 per cent. In terms of currency, the taxes on small engine vehicles could rise by over Ksh150,000.
The affected vehicles include the Mazda Demio and Toyota Vitz.
For instance, the tax on a 1.5-litre petrol-powered Mazda Demio is set to rise to Ksh467,350, up from Ksh247,109, following an increase in the car’s CRSP (showroom price) from Ksh1.67 million to Ksh3.39 million.
Conversely, some of the vehicles, such as the Lexus LX570 and the Volkswagen Tiguan, have their taxes reduced.
For instance, wealthy buyers of the Lexus LX570, priced above Ksh14 million, will benefit from a 29 per cent tax cut, with total taxes falling from Ksh4.81 million to approximately Ksh3.41 million.
The new CRSP will take effect from July 1 following consultations with stakeholders.
“The Kenya Revenue Authority (KRA) wishes to inform the public that, effective 1st July 2025, a new Current Retail Selling Price (CRSP) schedule will be applied in the computation of customs value for used motor vehicles imported into the country,” read the statement in part.
“The updated CRSP list has been published on the KRA website. Importers and other stakeholders are therefore encouraged to visit the page and familiarise themselves with the new list and acquaint themselves with the changes.”
