You find a 2018 BMW 3-Series at auction. It has high mileage, so the price is a steal—only $5,500 (Ksh 700k). You excitedly calculate 35% duty on Ksh 700k and think you have found the deal of the century.

Then the tax bill arrives: Ksh 1.8 Million.

You panic. You show KRA your invoice. They ignore it. Why? Because of CRSP. KRA does not tax you based on what you paid; they tax you based on what they believe the car is worth.

1. What is CRSP?

CRSP stands for Current Retail Selling Price.

  • The Definition: It is the estimated price of that specific car model if it were sold brand new in a Kenyan showroom today.
  • The List: KRA publishes a massive PDF database listing thousands of car models and their CRSP values.
  • The Logic: KRA assumes every 2018 Toyota Harrier is worth the same amount, regardless of whether you bought a clean one or a rusty one.

2. Why KRA Ignores Your Invoice

In the past, importers would fake invoices. They would buy a car for $20,000 but create a fake invoice for $5,000 to pay less tax. To stop this, KRA stopped looking at invoices entirely.

The Rule: Your buying price in Japan is irrelevant for tax calculation. You could get the car for free as a gift, and KRA would still charge you the full tax based on the CRSP.

3. The "Cheap Luxury" Trap (The BMW/Mercedes Killer)

This is where new importers go bankrupt.

⚠️ The Scenario: Cheap Purchase, Expensive Tax

You Buy: A high-mileage BMW X5 for cheap ($8,000).

KRA Sees: A Luxury SUV. They check the CRSP for a brand new X5 (approx Ksh 14 Million).

The Calculation: They apply depreciation to that Ksh 14M figure. Even after depreciation, the taxable value remains massive.

The Result: You pay tax on a "Luxury Car" value, even though you bought a "Budget Car." Avoid cheap German cars unless you have checked the CRSP first.

4. The July Update Cycle

KRA usually updates the CRSP list in July of every year.

  • The Risk: If you budget for a car in May, and the ship arrives in August, the CRSP might have increased in the July update.
  • The Advice: Always check the latest CRSP list (available on the KRA website or via your clearing agent) before bidding.

Summary

  • Tax is based on CRSP, not Invoice.
  • CRSP = Price of the car when Brand New.
  • Avoid "Cheap" Luxury Cars: The purchase price is low, but the tax remains sky-high.