The High Court has temporarily halted the implementation of the Kenya Revenue Authority’s (KRA) revised Current Retail Selling Price (CRSP) schedule for used motor vehicles, following a petition challenging its legality and fairness.
In interim orders issued on Monday, the court certified the matter as urgent and suspended the rollout of the updated CRSP list, which was set to take effect on July 1, 2025. The stay affects both KRA’s circular dated May 22 and a public notice published on May 30, which outlined the updated valuation framework.
The petitioner contends that the CRSP revision was rolled out without meaningful public participation, a breach of Article 10 and Article 201 of the Constitution. While KRA claims it held stakeholder consultations, the petitioner argues that these engagements were limited to car dealers, leaving out consumers and the general public who are equally affected.
Further, the petition challenges the 30-day notice given for implementation, terming it unreasonable and a violation of Article 47, which guarantees fair administrative action. The petitioner notes that the importation process for used vehicles — from procurement to clearance takes between 3 to 6 months, and the abrupt change jeopardizes the financial expectations of importers who made decisions under the 2019 CRSP framework.
Industry stakeholders have also raised concerns over errors in the new CRSP list. According to the petition, the schedule contains several omissions and inaccuracies, such as misclassifying vehicle models, assigning incorrect fuel types, and inconsistent valuations for identical models. Some of the affected vehicles are reportedly already in transit to Kenya, raising fears that importers will suffer financial losses under the new tax regime.
The court has suspended implementation of the CRSP changes until July 17, 2025, pending a full hearing. It also directed that all relevant documents be served on the respondents.
This development marks a significant pause in KRA’s efforts to update its valuation benchmarks for used vehicle imports, as the legal battle over public participation and administrative fairness unfolds.
