Kenya’s Used Car Market in Turmoil as KRA Hikes Vehicle Valuation Rates

Used car importers in Kenya are ringing the alarm bells following a sharp rise in vehicle valuation rates published by the Kenya Revenue Authority (KRA), set to take effect on July 1. The new Current Retail Selling Price (CRSP) list could dramatically raise the cost of importing used vehicles—an outcome importers warn will hurt low- and middle-income earners who rely on affordable cars. 

According to the new list, taxes for several popular models have increased by over 80%, with some even doubling. For instance: 

Toyota Passo (990 cc): Up to KSh 2.63 million from KSh 1.41 million — an 87% increase 

Nissan Vanette: Now valued at KSh 4.67 million, previously KSh 2.33 million 

Toyota Probox: New rate is KSh 3.36 million, a 91% rise 

Importers say these increases are not just steep—they’re unsustainable. Vehicles that once provided budget-friendly mobility could now be out of reach for many Kenyans. 

According to the Car Importers Association of Kenya (CIAK), import volumes have been falling for years due to rising taxes and valuation disputes. In 2018, CIAK imported 235,000 vehicles. By 2023, this number dropped to 70,000, and by August last year, just 40,000 units had been imported. 

CIAK Chairperson Peter Otieno expressed frustration over the lack of consultation from KRA and its Customs and Border Control department. “We’ve contested these hikes since 2018 and even taken the matter to court multiple times. But the increases keep coming,” he said. 

Otieno also criticized the KRA’s methodology, questioning the alleged reliance on data from the Japanese yearbook without clear justification or transparency. 

In defense of the valuation changes, Dr. Lilian Nyawanda, Commissioner of Customs and Border Control, explained that the 2024 CRSP list reflects several market shifts: New car models entering the market, Fluctuations in exchange rates and Changes in excise duty (now 35% from 30% in 2019). 

She emphasized that the CRSP is grounded in international standards, including the WTO Agreement on Customs Valuation, and noted that the latest version includes 5,200 models, a significant jump from 3,000 in 2019. 

CIAK also raised concerns over key vehicle models omitted from the CRSP list, including: Toyota Vitz (non-hybrid), Toyota Fielder 1800cc, Subaru Impreza GK2, Toyota Hiace, Hilux, Rosa buses, and even some Mazda and Volvo units 

This absence, they argue, creates uncertainty. Without clear valuations, importers may be subjected to inconsistent rulings at the port of entry—further discouraging trade. 

CIAK is urging KRA to engage more directly with stakeholders to develop a CRSP framework that is transparent, fair, and reflective of current market realities. The association proposes forming a joint committee to review valuation data and provide real-time updates as new models enter the market. 

“The goal should be to increase vehicle import volumes, not reduce them,” Otieno stated. 

If the new CRSP is implemented as-is: Import costs may rise significantly, Vehicle affordability could decline, Government tax revenues may fall due to reduced import volumes, The used car market—vital to Kenya’s economy—could shrink further 

As Kenya pushes forward with its economic reforms, striking the right balance between revenue generation and trade facilitation will be crucial. Car importers are not just demanding lower taxes—they’re demanding predictability, fairness, and a seat at the table.