The KRA formula
KRA doesn't care what you paid. It knows what your car is worth.
Before a single shilling of duty is assessed, KRA consults its CRSP — a master price list of every car model sold in Kenya. It's the reference that determines your tax bill, regardless of the auction price you paid.
Standardized Valuation
KRA uses the same retail price for every Mercedes G63 imported — whether it came from Japan or Dubai.
What is CRSP
The price list KRA built for itself.
CRSP stands for Current Retail Selling Price. It is an extensive database maintained by the Kenya Revenue Authority that acts as the baseline valuation for calculating taxes on imported vehicles.
Rather than relying on the invoice you received from an overseas seller, KRA uses the CRSP to ensure standard valuations and prevent under-declaration. The most recent update took effect on July 1, 2025, expanding coverage to over 5,200 models and revising valuations to reflect a reference rate of KSh 130 per USD.
Age matters
The older your car, the less KRA taxes it.
% of CRSP taxable · July 2025 rates
95%
Up to 1 yr
80%
1 – 2 yrs
70%
2 – 3 yrs
60%
3 – 4 yrs
50%
4 – 5 yrs
45%
5 – 6 yrs
40%
6 – 7 yrs
35%
7 – 8 yrs
Age measured from first registration date. A 5-year-old car is taxed on 50% of its CRSP value.
The back-calculation
KRA starts from the retail price — and works backwards.
The CRSP is Kenya's retail price — it already has all duties, VAT, and a ~25% dealer markup baked in. KRA reverses all of that to find the pre-duty Customs Value, then re-applies duties on that derived number.
CRSP valuestart
Kenya retail price including all duties, VAT, and markup
÷ 1.25
Remove dealer markup (~25%)
× (1 − dep rate)
Apply age depreciation from schedule above
÷ (1 + Import Duty rate)
Remove import duty (35% cars, 25% motos & EVs)
÷ (1 + Excise rate)
Remove excise duty (varies by engine CC and fuel)
÷ 1.16
Remove VAT (16%)
= Customs Value
Pre-duty base on which all charges are re-applied
The higher of this derived figure or your actual CIF value is used as the final Customs Value. Declaring a very low FOB price won't reduce your tax bill if the CRSP-derived figure is higher.
The stack
Six charges. All compounding.
Each charge builds on the last. By the time VAT is applied, it's calculated on the customs value plus import duty plus excise duty. That compounding is why total taxes often exceed the car's own purchase price.
Step 01
BaseCustoms Value
The back-calculated pre-duty figure derived from CRSP. The higher of this number or your actual CIF is used as the taxable customs value.
Step 02
35% of CIFImport Duty
The primary tax on all imported vehicles, applied at 35% of the customs value. This rate has been in effect since July 1, 2023.
Step 03
10 – 35% of (CV + Import Duty)Excise Duty
Applied on the combined Customs Value + Import Duty. The rate depends on engine capacity and fuel type. Motorcycles pay a fixed amount per unit.
EV (all sizes) → 10%
Petrol/Diesel ≤ 1500cc → 20%
Petrol/Diesel 1501 – 2999cc → 25%
Petrol ≥ 3000cc / Diesel ≥ 2500cc → 35%
Motorcycles → KES 12,952.83 per unit (fixed)
Step 04
16% of (CIF + ID + ED)VAT
VAT at 16% is applied to the full cumulative total — not just the car price. This compounding effect is why total taxes often exceed the vehicle's own purchase price.
Step 05
2.5% of CV (min. KES 5,000)Import Declaration Fee (IDF)
A mandatory KRA fee charged at the time of customs declaration. Applied separately — it does not compound into VAT or other duties.
Step 06
2% of CIFRailway Development Levy (RDL)
A government infrastructure levy collected to fund Kenya's railway and road networks. Applied directly on the customs value.