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. This decision comes pending the hearing and determination of a case challenging the legality and fairness of the proposed changes, which were scheduled to take effect on July 1, 2025.
The court issued interim orders after certifying as urgent an application filed against the rollout of the revised CRSP list. The order stays both the circular issued on May 22, 2025, and the public notice published on May 30, 2025, which outlined the planned changes to the valuation framework used to determine import taxes for used vehicles.
The petitioner argues that the new CRSP list was introduced without adequate public participation, thereby violating constitutional principles outlined in Articles 10 and 201. While KRA has stated it consulted stakeholders, the petitioner contends that the consultations were limited to vehicle dealers, excluding consumers and the broader public.
The court has been asked to compel KRA to disclose the identities of the stakeholders involved and provide evidence of the engagement process. The petition further asserts that the CRSP list, issued by KRA’s Commissioner for Customs and Border Control and the Commissioner General, is governed by provisions in the East African Community (EAC) Customs Management Act and therefore qualifies as a statutory instrument under Kenyan law. As such, it should have undergone proper legislative procedures, including presentation to Parliament as required by the Statutory Instruments Act procedures the petitioner claims were not followed.
Another key issue raised is the short 30-day implementation period, which the petitioners argue is arbitrary and a violation of the right to fair administrative action guaranteed under Article 47 of the Constitution. The brief notice period, they claim, does not account for the legitimate expectations of importers and the public who made vehicle orders under the current 2019 CRSP schedule.
The petition also points out that importing a vehicle typically takes between three to six months, meaning that the new schedule would unfairly impact importers who have already made financial commitments based on the existing framework.
Moreover, the revised CRSP schedule is alleged to contain numerous errors and omissions that undermine its reliability as a tax base. These include the omission of several vehicle models, mismatched specifications such as incorrect fuel types and chassis numbers, and inconsistent valuations for the same vehicle models. It is further noted that some of the affected vehicles are already in transit to Kenya, compounding the financial and logistical impact on importers.
The suspension will remain in effect until July 17, 2025, with the court directing that all relevant documents be served on the respondents.
