Kenyans hoping to purchase used motor vehicles have received a major reprieve after the High Court temporarily suspended the implementation of the Kenya Revenue Authority’s (KRA) revised Current Retail Selling Price (CRSP) schedule ; a move that was widely expected to double the cost of most imported cars.
In orders issued Monday, the court certified as urgent a petition challenging the rollout of the updated CRSP list, which was scheduled to come into effect on July 1, 2025. The court has frozen implementation of the new prices until July 17, pending a full hearing and determination of the matter.
The CRSP schedule used by KRA to determine customs duties payable on imported used vehicles was communicated via a circular dated May 22, 2025 and a public notice published on May 30, 2025. Both documents have now been stayed by the court.
At the center of the legal challenge is the claim that KRA introduced the revised CRSP without meaningful public participation, contrary to the Constitution. The petitioner argues that while KRA claimed to have consulted “stakeholders,” those consultations were narrowly limited to car dealers, excluding consumers, importers, and the general public as required by Articles 10 and 201 of the Constitution.
The court has also been asked to compel KRA to disclose the identities of the stakeholders consulted, and to provide details of the engagement process.
Further, the petition challenges the legal status of the CRSP schedule, noting that it derives authority from Section 122 and the Fourth Schedule of the East African Community Customs Management Act. As such, the CRSP qualifies as a statutory instrument, and should have been tabled before Parliament in compliance with Article 94(6) of the Constitution and the Statutory Instruments Act a step the petitioner says was skipped entirely.
The case also raises concerns over fair administrative action, citing Article 47 of the Constitution. The petitioner argues that the 30-day implementation window was arbitrary and unreasonable, given the long lead times involved in importing a vehicle typically between three to six months. Many importers, it is claimed, had already placed orders based on the existing 2019 CRSP list and now risk heavy financial losses.
“The impugned CRSP was hurriedly assembled and is pervaded with fundamental errors and omissions,” the petition reads in part. It alleges that several commonly imported models are missing from the new list, while others are incorrectly listed with wrong fuel types, chassis numbers, and conflicting valuations for identical models.
In some cases, the affected vehicles are already in transit to Kenya, placing importers in a legal and financial bind.
The court directed that KRA and all other respondents be served with the application and related documents immediately, with responses due within set timelines ahead of the next hearing date on July 17, 2025.
