Car importers warn KRA's new valuation list will collapse market, cost jobs
Other examples include the Toyota Probox jumping 91 per cent to over Sh3.3 million, while newer vehicles such as the Aiways U6 electric SUV are listed at Sh8.2 million and the Audi 3.0 TFSI Quattro S Line at more than Sh16.2 million.
Car importers have opposed the Kenya Revenue Authority’s (KRA) new vehicle valuation list that takes effect on July 1, warning it threatens to collapse the used car market and cost jobs.
The Car Importers Association of Kenya (CIAK) said the updated Current Retail Selling Price (CRSP) list, which KRA uses to calculate import taxes, unfairly inflates vehicle prices and was introduced without proper stakeholder input.
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“The final list disregarded critical input from stakeholders. It’s like the consultations were just for show,” CIAK national chairman Peter Otieno said in a statement.
The revised prices show steep increases for popular models, with the Toyota Passo 9,90cc valued at Sh2.6 million, up 87 per cent from before, and the Nissan Vanette doubling to Sh4.6 million.
Other examples include the Toyota Probox jumping 91 per cent to over Sh3.3 million, while newer vehicles such as the Aiways U6 electric SUV are listed at Sh8.2 million and the Audi 3.0 TFSI Quattro S Line at more than Sh16.2 million.
“These prices are out of touch with our market. Even second-hand versions will attract duties most dealers and customers can’t afford,” Otieno said.
CIAK also criticised the list for missing several common models like the Toyota Hilux and Subaru Impreza G4, creating uncertainty for importers.
The association dismissed KRA’s claim of wide consultations, stating, “You denied the leaked list was yours, but now you've published it exactly as it was. So why pretend to engage?”
They further criticised KRA for ignoring their proposed depreciation structure that allowed up to 85 per cent depreciation for cars older than seven years.
CIAK warned that the new valuations could reduce stock among small and medium importers by 70 per cent due to unaffordable duties and risk job losses in clearing yards, garages, and showrooms.
The association cited a series of recent tax increases, including excise duty rising from 20 to 35 per cent and import duty increasing from 25 to 35 per cent.
“You cannot kill the industry to raise revenue. In the end, you’ll get neither,” Otieno concluded.
CIAK demands immediate suspension of the new list, a 90-day transition period, and a joint technical review team.
The group also referenced a 2018 High Court case and unresolved tax refund claims, accusing KRA of breaching court orders by releasing the list without clearance.
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