KRA’s New Car Tax Halted: High Court Hits the Brakes — What Now?

Just when we were all mentally preparing for the July 1st import duty shocker, the High Court has stepped in with a well-timed “Tulia kwanza.”

That’s right. The Kenya Revenue Authority’s (KRA) hotly debated Current Retail Selling Price (CRSP) update - the one that had everyone from car dealers to mama mboga bracing for impact - has been temporarily suspended.

For weeks, the talk of the town has been about the skyrocketing car import duty in Kenya. We all saw the figures – the price of a trusty Toyota Probox or a Mazda Demio was about to get a bit pricey, more than doubling in taxes. 

And for car buyers, importers, and everyday Kenyans just trying to make their way on the road, this ruling might feel like a collective exhale. So… what actually happened, and what does it mean for you?

Why Did the Court “Pump the Brakes” to KRA's New Car Tax

This wasn’t just about taxes being too high (even though… they were). A Kenyan citizen challenged the legality of the new CRSP rollout, and the High Court agreed it was urgent enough to pause everything pending a full hearing.

Here’s what the petitioner argued - and why the Court thought it was worth putting everything on hold:

1. No Proper Public Participation

The Constitution (Articles 10 and 201) is crystal clear: when it comes to public finance decisions, Kenyans must be consulted. The petitioner argued KRA only spoke to a few dealers behind closed doors and skipped engaging the wider public - aka, you and me.

2. It’s Basically a Law (Without Following the Law)

The new CRSP isn’t just a spreadsheet - it fundamentally changes how taxes are calculated. According to the petitioner, it qualifies as a statutory instrument and should have gone to Parliament. Spoiler alert: it didn’t.

3. Only 30 Days’ Notice? Really?

Car imports don’t work on impulse. From searching to shipping, it can take 3 - 6 months. KRA gave just 30 days’ notice before implementing the change. That’s not just unfair (unfairly punishing people who had already ordered cars based on the old 2019 tax rates) - it potentially violates Article 47 of the Constitution on fair administrative action.

4. The New List is… Kinda a Mess

The CRSP list was said to be riddled with errors and inconsistencies. Think wrong fuel types, mismatched trims, duplicate models with wildly different duty figures - and cars already en route to Kenya using outdated valuations.

The court agreed that all this deserved a proper hearing - and hit pause.

What Does This Mean for You as a Buyer or Importer?

Plainly speaking? This means the 2019 CRSP rates are still valid, for now.

If you’ve already ordered a car, it can be cleared using the older duty calculations - a potential savings of hundreds of thousands of shillings.

If you were on the fence about importing, this temporary window might just tip the balance in your favour. But remember: it’s just a pause, not a full repeal (yet). All eyes now turn to July 17th, when the court reconvenes. This temporary suspension creates a new dynamic for everyone in the automotive ecosystem.

• For Buyers and Importers:  This is a window of opportunity. Anyone with a vehicle arriving at the port can clear it using the older, more affordable 2019 CRSP rates. For prospective buyers, the dream of owning a Vitz, Demio, or Note is still alive, at least until the court makes its final decision.
• For KRA: This is a significant setback. The authority must now defend its methodology and consultation process in court, putting its plans for enhanced revenue collection from the auto sector in jeopardy.

What Will This Mean for Peach Cars and Our Customers?

Here’s where it gets even more reassuring: this doesn’t shake us. Unbwogable we are!

Peach Cars’ focus has always been on locally used cars - no import duty drama, no last-minute tax hikes, no “surprise” costs at the port.

Here’s why that matters now more than ever:

• What You See is What You Pay No customs shockers. No 3-month delays. You pick a car, pay, and drive. As it should be.
• No Port Games You’re not held hostage to court cases or policy flip-flops. Our cars are here, inspected, and road-ready.
• Verified Quality Every car on Peach undergoes a 135-point inspection. We check everything so you don’t have to second-guess anything.
• Peace of Mind, Now More Than Ever Whether you’re buying for your family, your hustle, or your next road trip to shags, stability matters - and that’s what we offer.

Final Thoughts: In Times of Uncertainty, Choose Certainty

This latest ruling is a moment of relief for buyers, but it also reminds us how fragile the import system can be. Things change overnight, and the ripple effects are huge.

But there’s a smarter path: local, verified, fairly priced cars that are inspected to the last bolt and ready to move when you are.

If you're tired of the tax rollercoaster, the shipping delays, and the sleepless nights wondering if your car will arrive with a KRA invoice that triples your budget...

It’s time to shift gears. It’s time to Drive Different!

Shop smarter. Sleep better. Drive sooner.

Browse locally used, verified cars: www.peachcars.co.keSell yours the stress-free wayVisit us in Nairobi and experience car buying - minus the drama.

Peach Cars – Where Kenya Moves With Confidence.