What’s Happening with CRSP?
If you’ve been thinking of importing a used car into Kenya, you’ve probably come across the term CRSP – Current Retail Selling Price. It plays a massive role in determining how much tax you’ll pay when bringing a car into the country.
Recently, the Kenya Revenue Authority (KRA) tried to roll out a revised CRSP schedule starting 1st July 2025, but in a twist of events, the High Court has temporarily suspended the new changes. Let’s unpack what this means for car importers, dealers, and buyers across the country.
High Court Ruling: CRSP Changes on Hold for Now
A petition filed by stakeholders in the auto sector has led to a temporary court order halting the implementation of the new CRSP guidelines.
Key Points from the Ruling:
- Temporary Suspension Granted: Justice Joe Omido issued the suspension until 17th July 2025, putting a pause on both KRA’s circular (dated 22nd May 2025) and the public notice (dated 30th May 2025).
- Immediate Relief for Importers: The move gives breathing space to importers and motor vehicle dealers who were preparing for a sharp rise in costs.
- Court’s Concerns: The judge pointed out that the new CRSP structure was rushed and full of critical errors.
- Transition Gaps: The lack of a proper transition plan was flagged as potentially unfair to importers who had complied with previous CRSP standards.
What Exactly Is CRSP and Why Should You Care?
CRSP is the benchmark value that KRA uses to determine how much duty and taxes you owe when importing a car. It influences:
- Import Duty
- Excise Duty
- Value Added Tax (VAT)
For example, if CRSP for a Toyota Fielder goes up, your total tax bill rises even if you bought the car for less abroad. That’s why any changes to this schedule are a big deal for anyone in the auto trade or anyone looking to import a car on a budget.
Want to know what second-hand cars currently offer the best value under the existing system? Check out listings on https://auto24.co.ke/, where you can filter cars by year, price, and condition.
Why the Court Said “Not So Fast”
The court highlighted three big issues with how the new CRSP was handled:
- Rushed Rollout – Stakeholders didn’t have enough time to prepare.
- Lack of Consultation – Key industry players weren’t adequately engaged.
- Errors and Omissions – The CRSP list reportedly had several discrepancies that could lead to unfair taxation.
The next court date is 17th July 2025, which will determine whether the CRSP changes are allowed to proceed, need revision, or get scrapped entirely.
How This Affects You as a Car Buyer or Importer
Until the court makes a final decision, the old CRSP rates remain in place. That means:
- Lower Import Costs: At least for now, the cost of bringing in popular models like the Mazda Axela, Toyota Belta, or Nissan X-Trail remains stable.
- More Flexibility: Importers have time to adjust their sourcing and pricing strategies.
- Used Car Market Stability: Dealers won’t have to raise prices unexpectedly due to sudden tax hikes.
Thinking of importing a car while the window is still open? Now might be the right time. To explore options, head over to https://auto24.co.ke/ and browse affordable used car listings from reputable sellers across Kenya.
What Should Importers Do Now?
Here are a few practical steps to take during this grace period:
✅ Stay Updated on Legal Proceedings
Bookmark trusted automotive news sources like https://automag.co.ke/ for real-time updates on the CRSP court case.
✅ Prepare Documentation Early
Whether or not the new CRSP kicks in, you’ll want to ensure all import paperwork and valuation reports are clean and compliant.
✅ Avoid Overcommitting
While it’s tempting to go all-in now, importers should avoid flooding the market until the case concludes in July.
✅ Talk to Clearing Agents
Engage with experienced clearing agents who can help you understand tax implications based on the current CRSP versus the proposed one.
Conclusion: Breathing Room, But Stay Alert
For now, the High Court’s intervention gives everyone in the auto industry—importers, buyers, and dealers—a bit of breathing room. But it’s not the end of the road.
With the next court session set for 17th July 2025, everyone is waiting to see whether the KRA will be allowed to push forward with the revised CRSP. Until then, it’s business as usual under the old system—but don’t take your eyes off the road.
Stay informed, stay compliant, and if you’re in the market for a used car, make the most of the current window.
FAQs
1. What is CRSP in simple terms?
CRSP (Current Retail Selling Price) is a standard KRA uses to value used cars for tax purposes when importing.
2. Is the new CRSP completely cancelled?
No. It’s only temporarily suspended until 17th July 2025, pending a court decision.
3. Will my car import be taxed differently now?
No. For now, KRA is still using the existing CRSP system.
4. Where can I find affordable second-hand cars in Kenya?
Visit https://auto24.co.ke/ for verified listings of used cars across the country.
5. Where can I get reliable updates on this issue?
Check out https://automag.co.ke/ for the latest news, updates, and expert analysis tailored for Kenyan car buyers and importers.
