Understanding the CRSP Template
The Current Retail Selling Price (CRSP) is a schedule published by KRA listing the retail prices of brand new vehicles in Kenya, categorized by make, model, engine capacity, and trim. KRA uses this brand-new price as the base value for tax calculation. If the vehicle is used, KRA applies a standard depreciation rate to reduce the value. For an 8-year-old car (the maximum age allowed), KRA allows a maximum depreciation deduction of 70%, meaning the tax is calculated on 30% of the brand-new CRSP value.
Import Duty and Tax Rates
Once the depreciated value of the car (known as the Customs Value or CIF) is determined, several sequential taxes are applied:
- 1. :
- 2. Import Duty: Standard rate of 35% of the customs value.
- 3. Excise Duty: Ranges from 20% to 35% depending on the engine size (cc) and fuel type (diesel, petrol, hybrid, electric). Electric vehicles benefit from a lower excise rate of 10% to encourage green mobility.
- 4. Value Added Tax (VAT): 16% applied to the sum of Customs Value, Import Duty, and Excise Duty.
Statutory Levies and Port Fees
In addition to the core duties, you must pay statutory levies:
- 1. :
- 2. Import Declaration Fee (IDF): 4% of the customs value (minimum of KES 5,000).
- 3. Railway Development Levy (RDL): 2% of the customs value.
- 4. Radiation Fee, KEBS quality inspection fee, and various port handling charges. These charges are collected directly through the KRA Simba system (iCMS) and must be paid before port clearance agents can release the vehicle.
A Sample Duty Calculation
- 1. Consider a vehicle with a brand-new CRSP of KES 5,000,000. If imported as a 7-year-old car, KRA allows a 65% depreciation, yielding a Customs Value of KES 1,750,000.
- 2. Import Duty (35%): KES 612,500.
- 3. Excise Duty (25% on KES 2,362,500): KES 590,625.
- 4. VAT (16% on KES 2,953,125): KES 472,500.
- 5. IDF (4%): KES 70,000.
- 6. RDL (2%): KES 35,000. Total payable taxes: KES 1,780,625. Note how the taxes can match or exceed the purchase price!
How to Minimize Custom Duty Risks
To avoid unexpected tax bills: Always check the latest KRA CRSP list before buying. A slight difference in trim level or engine code can put your car in a higher CRSP category, leading to hundreds of thousands in extra duty. Always consult a verified clearing agent in Mombasa who has direct access to the iCMS portal to run a pre-assessment calculation before shipping the vehicle.