New KRA CRSP Update: Why Your Next Used Car Might Cost a Lot More

Thinking of importing a used car after July 1st, 2025? You might want to read this first.

The Kenya Revenue Authority (KRA) has announced a sweeping overhaul of how import duties are calculated for second-hand cars. The updated Current Retail Selling Price (CRSP) schedule replaces the 2019 benchmarks and could send import costs, and car prices - through the roof for popular models.

This isn’t just a technical update. It’s a shake-up that could change what Kenyans drive, what dealers stock, and where buyers turn for value.

What’s Changing in 2025 - and Why It Matters

Effective 1st July 2025, the KRA will use a new CRSP schedule to calculate customs duties on used vehicle imports. While this may sound routine, the updated framework reflects:

• Newer market values
• Stronger enforcement
• Higher exchange and duty rates
• More models included in the database

It’s part of a broader transition toward a Transaction Value System - a model KRA claims will enhance transparency and reduce loophole exploitation.

According to KRA:

“The new CRSP is intended to strengthen revenue performance, improve compliance, and reduce valuation manipulation.”

But beneath the surface, the story isn’t quite so tidy.

Winners and Losers: How Prices Will Shift

Models Seeing the Biggest Price Hikes

These are not small adjustments. Here’s what some popular models will cost importers in taxes under the new CRSP:

Luxury and performance cars are especially hard-hit. For example, the Porsche 911 Turbo S jumps from KSh 4.7 million to KSh 13.3 million, and the BMW M5 Comp from KSh 4.9 million to KSh 7.7 million.

Volvo owners aren’t spared either. The 2018 XC60 D4’s duty rises from KSh 952,000 to KSh 1.7 million, and the S60 T5 R Design from KSh 795,000 to KSh 1.87 million.

These increases mean many Kenyans may have to either dig deeper into their pockets - or change their buying strategy altogether.

The Few Getting a Tax Break

Some models are actually seeing reduced duty - mostly larger, newer SUVs:

So unless you’re shopping for a premium SUV, expect to pay more come July.

Why This is Happening: A Quick Breakdown

Currency Fluctuations

The exchange rate used in duty calculations has changed - from KSh 100/USD (2019) to KSh 130/USD (2025) - raising the Kenya shilling value of imports.

Higher Duty and Excise Rates

• Import Duty: Now at 35%, up from 25% in 2019.
• Excise Duty: Topped at 35%, compared to 30% previously.

More Models Covered

Previously under-the-radar vehicles are now officially listed - removing loopholes but expanding the taxable pool.

What This Means for Dealers

• Profit Squeeze: Dealers with incoming stock face thinner margins unless they raise prices.
• Stock Shake-Up: Importers may shift toward models with lower duties - but competition will heat up fast.
• Paperwork Pressure: More precise documentation will be needed to avoid costly delays or penalties.

What Will This Mean for Peach Cars and Its Customers?

Peach Cars is primarily focused on locally used vehicles, meaning the new CRSP doesn't directly change our stock. But make no mistake - its effects will ripple across the entire market.

“As the cost of imports rises, demand for locally used cars will likely surge. That’s where Peach Cars becomes the smarter alternative - offering verified, fairly priced cars that won’t blindside you with hidden costs.”  Zachary Petroni, Co-Founder and COO, Peach Cars

Here’s how buyers stand to benefit with Peach Cars:

• More affordable options as imported prices soar
• Increased listings as import-reliant dealers turn to local inventory
• Verified ownership, inspection, and records - no guesswork or grey areas

Whether you’re avoiding duty hikes or just want a reliable, hassle-free buying experience, Peach Cars is your plug.

Final Thoughts: Be Smart, Not Sorry

The 2025 CRSP changes are a wake-up call for Kenya’s used car buyers and importers. Whether you’re looking to buy, sell, or simply understand your options, staying ahead of the curve has never been more important.

If you’re unsure what this means for your next car, skip the stress and let Peach Cars help you navigate with confidence.

Ready to Beat the Tax Hike?

Explore verified, locally used cars that are road-ready, tax-free (literally), and inspected to the last bolt. 👉 Browse used cars on Peach Cars