How KRA Determines the Customs Value of Imported Vehicles in Kenya
Planning to import a car into Kenya? One of the most important figures to understand before you buy is the vehicle's customs value. This is the value used by Customs when assessing applicable import taxes and levies, and it may not always be the same as the price you paid for the vehicle.
Understanding how KRA determines this value can help you estimate the true cost of importing a vehicle and avoid relying on an overseas purchase price that does not tell the full story.
Quick Answer: How Does KRA Determine the Customs Value of an Imported Vehicle?
KRA determines customs value using the customs valuation framework provided under the East African Community Customs Management Act (EACCMA) and the WTO customs valuation principles. For used motor vehicles, KRA uses the Current Retail Selling Price (CRSP) methodology, with depreciation applied according to the vehicle's age.
The customs value is then used as a basis for calculating the applicable taxes and levies on the imported vehicle. KRA can also verify the information and documents submitted by an importer when determining whether a declared value is acceptable.
What Is Customs Value?
Customs value is the value assigned to imported goods for customs assessment purposes.
When importing a vehicle into Kenya, it is important to understand that there are several different figures involved in the cost of importing a car:
The price you pay the seller
Freight or shipping costs
Insurance
CIF value
Customs value
Import duty
Excise duty
VAT
Other applicable fees and levies
These figures are related, but they are not interchangeable.
KRA states that customs valuation generally starts with the price actually paid or payable for imported goods, subject to the applicable customs valuation rules. Where that transaction value cannot be accepted, the valuation framework provides other prescribed methods.
For motor vehicles, particularly used vehicles, KRA has a specific valuation approach involving the Current Retail Selling Price (CRSP).
How Does KRA Value Imported Vehicles?
There are two important concepts to understand: transaction value and the specific valuation approach used for used motor vehicles.
1. The Transaction Value Principle
Under the customs valuation framework, the starting point is generally the transaction value — the price actually paid or payable for the imported goods.
This means the purchase invoice and other supporting documentation are important when importing a vehicle.
However, the price on an invoice is not automatically the final customs value in every situation. Customs officers have the authority to verify the truth and accuracy of information submitted for valuation purposes.
If the declared transaction value cannot be used under the applicable valuation rules, the customs valuation framework provides alternative methods.
These can include values based on:
Identical goods
Similar goods
Deductive value
Computed value
A fallback method
The methods are applied according to the prescribed customs valuation rules.
2. How KRA Values Used Motor Vehicles
Used vehicles require a different approach because the price of a second-hand vehicle can vary considerably depending on its age, specification, condition, market and other factors.
KRA therefore uses the Current Retail Selling Price (CRSP) methodology when determining the customs value of used motor vehicles.
KRA explains that the customs value of a used motor vehicle is calculated by applying depreciation to the CRSP, based on the vehicle's age.
This means the price you paid for a used vehicle overseas is not necessarily the figure that KRA will use as its customs value.
What Is CRSP?
CRSP stands for Current Retail Selling Price.
In the context of imported used vehicles, CRSP refers to the price of a comparable new motor vehicle used as part of KRA's valuation methodology.
KRA introduced the CRSP approach to help address challenges in valuing used motor vehicles and to provide a more standardised approach to customs valuation.
The CRSP schedule contains vehicle information that can be used to identify the appropriate value for different makes, models and specifications.
KRA announced a revised CRSP schedule effective 1 July 2025. The revised list expanded significantly compared with the previous schedule and incorporated more detailed vehicle specifications, including differences in trim levels and vehicle performance.
This is particularly important for importers because two vehicles that appear to be the same model may have different specifications and therefore may not necessarily have the same valuation.
How Does Depreciation Affect the Customs Value of a Used Car?
A used vehicle is not treated as though it were a brand-new vehicle.
Under the CRSP-based approach, depreciation is applied according to the vehicle's age. KRA explains that this is based on the number of years since the vehicle's manufacture or first registration, as applicable under the valuation framework.
In simple terms:
CRSP → applicable depreciation → customs value
The older an eligible vehicle is, the greater the depreciation factor may be under the applicable valuation schedule.
However, this does not mean that an importer can simply take the overseas purchase price and subtract a percentage to determine the final customs value.
The applicable CRSP, vehicle specification, age and the rules in force at the time of importation all matter.
What Is CIF and How Does It Relate to Customs Value?
You will often see the term CIF when researching vehicle imports.
CIF stands for:
Cost + Insurance + Freight
It represents the cost of the vehicle together with applicable insurance and freight costs to the relevant destination.
KRA's guidance on motor vehicle importation describes CIF as the customs value used in its explanation of vehicle duty calculations and states that, for used vehicles, the CIF value is deduced from the CRSP.
For an importer, the important point is this:
Do not assume that the price you paid for the vehicle overseas is automatically the same as the customs value used by KRA.
The customs valuation process determines the value on which the applicable taxes are assessed.
What Factors Can Affect the Valuation of an Imported Vehicle?
When determining the appropriate value for a vehicle, information about the vehicle and the import transaction matters.
This can include:
Make
Model
Year of manufacture
Year of first registration
Vehicle specification
Trim level
Engine capacity
Fuel type
Transmission
Body type
Drive configuration
Applicable CRSP entry
Freight costs
Insurance
Purchase documentation
Other supporting import documents
This is one reason why giving an accurate description of the vehicle is important when planning an import.
A Toyota of one specification, for example, should not automatically be assumed to have the same valuation as another Toyota with a different engine, trim or configuration.
KRA noted in its revised CRSP announcement that the 2025 list incorporated more detailed specifications and had more than 5,200 unique models compared with approximately 3,000 in the previous list.
Why Isn't the Price on My Invoice Always the Same as KRA's Customs Value?
This is one of the most common questions people have when importing vehicles.
Imagine that you purchase a used vehicle from an overseas seller for a particularly low price.
You may naturally expect KRA to use exactly that amount as the basis for your vehicle's customs assessment.
But the customs valuation process does not simply mean:
"Whatever is written on the invoice = customs value."
The declared transaction value must satisfy the applicable customs valuation requirements. Customs can verify the truth and accuracy of the declared value and supporting documents.
For used motor vehicles, the CRSP methodology also provides a standardised basis for determining value.
This is particularly relevant when a vehicle has been purchased at:
An unusually low auction price
A significant dealer discount
A promotional price
A private-sale price
A price that appears substantially different from comparable vehicles
The key lesson is simple:
Your purchase price is an important part of your import documentation, but it should not be treated as the only figure that determines the vehicle's final customs value.
A Simplified Example of Vehicle Customs Valuation
Let's say you are importing a used vehicle into Kenya.
The process can be thought of in the following simplified way:
Step 1: Identify the vehicle
KRA needs information such as the vehicle's:
Make
Model
Year
Specification
Engine
Trim
Other identifying details
Step 2: Identify the applicable CRSP
The relevant CRSP information is identified based on the vehicle's applicable model and specification.
Step 3: Apply the relevant depreciation
The applicable depreciation is then considered based on the vehicle's age under the valuation methodology.
Step 4: Determine the customs value
This produces the value used for customs assessment.
Step 5: Calculate applicable taxes and levies
The applicable tax and levy rules are then applied to the relevant tax base.
Important: This is a simplified explanation rather than a KRA customs assessment. Actual calculations depend on the vehicle, its specifications, applicable valuation information, legislation and the documentation submitted during importation.
What Happens If KRA Does Not Accept the Declared Value?
Customs has the authority to examine the information and documentation provided by an importer.
If the transaction value cannot be accepted under the applicable customs valuation rules, alternative valuation methods can be considered.
The EACCMA customs valuation framework provides a sequence of methods, including the transaction value of identical goods, similar goods, deductive value, computed value and a fallback method.
KRA also states that importers can seek clarification on the assessed value.
This is why keeping accurate import documents is important.
Why Customs Value Matters When Buying a Car From Overseas
When comparing vehicles for import into Kenya, looking only at the overseas purchase price can give you an incomplete picture.
For example:
Overseas purchase price + shipping + taxes + clearing + other applicable charges = landed cost
The customs value plays an important role because it is used as a basis for assessing applicable taxes and levies.
KRA's vehicle-importation guidance confirms that taxes and duties are assessed based on customs value. This means a vehicle that looks inexpensive at the point of purchase may not necessarily be the cheapest option after importation.
Before committing to a vehicle, it is therefore worth considering the complete landed cost, rather than comparing overseas prices alone.
How to Avoid Surprises When Importing a Vehicle
Before buying a car for import into Kenya, consider the following:
1. Confirm the exact vehicle specification
The model name alone may not be enough. Engine, trim and other specifications can affect valuation.
2. Check the applicable KRA valuation information
CRSP information can help you understand how a used vehicle may be valued.
3. Keep your purchase documents
Retain the invoice, payment documentation and other relevant records.
4. Keep shipping and insurance documents
These can be important when establishing the import transaction and associated costs.
5. Calculate the landed cost
Do not base your budget only on the overseas purchase price.
6. Use a reliable import and clearing process
A reputable vehicle importer or clearing professional can help you understand the documentation and customs-clearance process.
7. Allow for changes in tax and valuation rules
Government tax rates, levies and valuation schedules can change. Always check the applicable rules at the time you import.
Summary: How KRA Determines Customs Value
KRA's customs valuation process is designed to determine the value of an imported vehicle for tax and customs assessment.
The key points are:
Customs value is not necessarily the same as the price you paid for the vehicle.
The customs valuation framework generally starts with the transaction value, subject to the applicable rules.
Used motor vehicles are valued using the CRSP methodology, with applicable depreciation taken into account.
CRSP means Current Retail Selling Price and is used as part of KRA's approach to standardising the valuation of used vehicles.
Vehicle specifications such as model, trim, engine and age can affect the applicable valuation.
The customs value is used as a basis for calculating applicable import taxes and levies.
Importers should consider the total landed cost, rather than the overseas purchase price alone.
For anyone importing a vehicle into Kenya, understanding customs valuation before purchasing can make it much easier to budget realistically and avoid unexpected costs.
Frequently Asked Questions About KRA Vehicle Customs Value
What is customs value in Kenya?
Customs value is the value assigned to imported goods for customs assessment purposes. It is used as a basis for calculating applicable import duty and other taxes or levies according to the relevant legislation.
Is customs value the same as the price I paid for the car?
Not necessarily. The transaction value is generally the price actually paid or payable, but it must meet the applicable customs valuation requirements. For used motor vehicles, KRA also applies its CRSP-based valuation methodology.
What is CRSP in Kenya?
CRSP stands for Current Retail Selling Price. KRA uses CRSP as part of its valuation methodology for used motor vehicles imported into Kenya.
How does KRA use CRSP to value used cars?
KRA uses the applicable CRSP for a comparable new vehicle and applies the relevant depreciation based on the vehicle's age to determine the customs value of a used motor vehicle.
Does the age of a vehicle affect its customs value?
Yes. The age of a used vehicle is relevant because depreciation is applied under the CRSP-based valuation methodology.
What is CIF value?
CIF means Cost, Insurance and Freight. It represents the vehicle's cost together with applicable insurance and freight components. KRA's vehicle-importation guidance uses CIF in explaining customs valuation and vehicle-duty calculations.
Can KRA reject the value on my invoice?
Yes, where the declared transaction value does not meet the applicable customs valuation requirements. Customs officers can verify the truth and accuracy of information and documentation supplied for valuation purposes.
Can I find out how KRA arrived at my customs value?
Yes. KRA states that customers can seek clarification regarding assessed values, and the EACCMA framework provides for an importer to request an explanation of how customs value was determined.
Does customs value determine all the taxes I pay?
Customs value is a basis for assessing applicable taxes and levies, but different taxes may have different calculation rules. This is why it is important to distinguish customs value from the final total amount payable during importation.
Can I calculate my car's customs value before importing it?
You can estimate the likely customs value before importing by identifying the exact vehicle specification and checking the applicable KRA valuation information. However, an estimate should not be treated as a guaranteed final customs assessment.
Importing a Car to Kenya? Look Beyond the Purchase Price
The price you see on a vehicle listing is only one part of the cost of importing a car into Kenya. Understanding CRSP, customs value, depreciation, shipping and applicable taxes before you buy can help you make a more informed decision and budget for the complete import process.
At UK RoadRunner, we help customers source and import vehicles while navigating the process from purchase to arrival in Kenya.
Thinking about importing your next car? Get in touch with UK RoadRunner to discuss your options.
Note: Customs valuation methods, CRSP schedules, tax rates and applicable fees can change. This article is intended as general information and should not be treated as a final customs or tax assessment. Always confirm the applicable KRA requirements at the time of importation.
