Finance & Investment Market Updates

KRA’s New CRSP for KIA Vehicles in Kenya 2025: Everything You Need to Know

KIA Carnival

The Kenya Revenue Authority (KRA) has introduced an updated Current Retail Selling Price (CRSP) schedule for used motor vehicles, effective July 1, 2025, impacting the importation of KIA vehicles into Kenya. This schedule determines the customs value for calculating import duties, VAT, excise duties, and other levies, affecting costs for importers, dealers, and consumers.

Understanding the KRA CRSP Schedule

The CRSP is a standardized valuation tool used by the KRA to establish the customs value of imported used vehicles. This value forms the basis for calculating:

  • Import Duty: 35% of the customs value.
  • Excise Duty: 25% for engines up to 3000cc, 35% for engines above 3000cc (e.g., 3300cc–3500cc models).
  • VAT: 16% of (customs value + import duty + excise duty).
  • Import Declaration Fee (IDF): 3.5% of the customs value (minimum KES 5,000).
  • Railway Development Levy (RDL): 2% of the customs value.

The 2025 CRSP schedule for KIA vehicles covers a wide range of models, including hatchbacks, sedans, SUVs, and station wagons, with fuel types such as petrol, diesel, electric (EV), and hybrid (HEV/PHEV). Popular models like the Carnival, Cerato, EV series, and Sportage cater to Kenya’s diverse automotive needs, from family vehicles to eco-friendly options.

Reasons for the 2025 Update

The KRA updates the CRSP schedule to reflect:

  • Currency fluctuations: The Kenyan Shilling’s value against the South Korean Won and other currencies affects import costs.
  • Market demand: Growing interest in SUVs, EVs, and hybrids like the EV6 and Carnival HEV influences pricing.
  • Government policies: Incentives for eco-friendly vehicles (e.g., EVs and hybrids) and tax revenue adjustments shape CRSP values.
  • Global economic factors: Rising production and shipping costs due to supply chain dynamics contribute to price updates.

This update ensures customs valuations align with Kenya’s automotive market trends as of July 1, 2025.

Key Highlights of the 2025 CRSP Schedule for KIA Vehicles

The 2025 CRSP schedule includes KIA’s extensive lineup, from compact hatchbacks like the Picanto to luxury SUVs like the EV9. Below is a detailed breakdown of selected models, categorized by vehicle type, with CRSP values in Kenyan Shillings (KES).

Station Wagons (Carnival)

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel Type
CARNIVALSPORT+ HEVAuto2WD159810,456,791Petrol
CARNIVALGT-LINE HEVAuto2WD160011,685,652Petrol
CARNIVALGT-LINEAuto4WD220011,180,641Diesel
CARNIVALSAuto4WD22008,038,859Diesel
CARNIVALGT-LINEAuto4WD350011,706,526Petrol
CARNIVALSAuto4WD35008,313,401Petrol

Hatchbacks and Sedans

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel Type
CERATOGT (Hatchback)Auto2WD16005,640,821Petrol
CERATOS (Sedan)Auto2WD20004,141,091Petrol
PICANTOGT LINE (PE2)Auto2WD12003,334,604Petrol
RIOGT-LINEAuto2WD10004,271,552Petrol
K4GT-LINEAuto2WD16006,578,918Petrol
STINGER3.3 GT (RED LEATHER)Auto2WD330013,017,224Petrol

Electric Vehicles (EVs)

ModelVariantTransmissionDriveEngineCRSP (KES)Fuel Type
EV3AIR 2WD SRAuto2WD06,410,275Electric
EV3GT-LINE 2WD LRAuto2WD08,612,123Electric
EV5AIR 2WD SRAuto2WD07,645,196Electric
EV6GT AWDAuto4WD013,411,749Electric
EV9GT LINEAuto2WD016,295,027Electric
NIROEV GT-LINE BLACK C PILLARAuto2WD09,744,695Electric

Hybrids (HEV/PHEV)

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel Type
NIROHEV GT-LINE BLK C PILLAR (HYB)Auto2WD16007,751,156Petrol/Electric
SORENTOGT-LINE 7 SEAT PHEV AWDAutoAWD160012,955,832Petrol
SPORTAGEGT-LINE HEV (FWD)Auto2WD16008,481,127Petrol/Electric

SUVs

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel Type
SELTOSGT-LINE (AWD) (SUNROOF)AutoAWD16006,958,442Petrol
SORENTOGT-LINE 7 SEATAuto2WD220010,527,187Diesel
SPORTAGEGT-LINE (AWD)Auto2WD16007,639,442Petrol
STONICGT-LINEAuto2WD10004,332,837Petrol

Implications for the Kenyan Automotive Market

The 2025 CRSP schedule for KIA vehicles has significant implications for importers, dealers, and consumers, particularly in the family vehicle, compact car, and eco-friendly segments.

For Importers

  • Premium Models: High CRSP values for models like the EV9 GT LINE (KES 16,295,027) and STINGER 3.3 GT (KES 13,017,224) result in substantial import duties, potentially limiting import volumes for luxury models.
  • Eco-Friendly Focus: EVs like the EV3 AIR 2WD SR (KES 6,410,275) and hybrids like the SORENTO GT-LINE PHEV (KES 12,955,832) benefit from potential tax incentives, encouraging importers to prioritize these vehicles.
  • Depreciation Benefits: Importing older models (e.g., 2018 models with 65% depreciation) can reduce customs values, making vehicles like the PICANTO SPORT (KES 2,814,290) more cost-effective.

For Dealers

  • Pricing Adjustments: High CRSP values for premium models like the CARNIVAL GT-LINE (KES 11,706,526) and EV6 GT AWD (KES 13,411,749) will increase retail prices, requiring competitive pricing strategies.
  • Inventory Focus: Affordable models like the PICANTO SPORT (KES 2,814,290) and CERATO S (KES 4,141,091) appeal to budget-conscious buyers, prompting dealers to stock these variants.
  • Marketing Strategies: Highlighting the family-friendly features of the Carnival, the off-road capabilities of the Sorento, and the sustainability of EV and hybrid models can attract diverse buyers.

For Consumers

  • Affordability Options: Models like the PICANTO SPORT (KES 2,814,290) and RIO S (KES 3,514,036) offer accessible entry points into the KIA brand.
  • Family and Utility Appeal: The CARNIVAL S (KES 8,038,859) and SORENTO S 7 SEAT (KES 8,245,455) cater to families needing spacious vehicles.
  • Eco-Friendly Options: EVs like the EV3 and EV5, and hybrids like the NIRO HEV and SORENTO PHEV, attract buyers seeking sustainable options with potential tax benefits.

How CRSP Affects Customs Valuation

The CRSP determines the customs value, adjusted for depreciation based on vehicle age (e.g., 65% for 2018 models in 2025). The customs value is used to calculate taxes and levies.

Example Calculation for KIA PICANTO SPORT (PE2) (CRSP KES 2,814,290, 1200cc, 2018 model):

  • Depreciation: 65% (2018 model) → Customs Value = 2,814,290 × (1 – 0.65) = KES 985,002
  • Import Duty: 35% of 985,002 = KES 344,751
  • Excise Duty: 25% of (985,002 + 344,751) = KES 332,438
  • VAT: 16% of (985,002 + 344,751 + 332,438) = KES 265,951
  • IDF: 3.5% of 985,002 = KES 34,475
  • RDL: 2% of 985,002 = KES 19,700
  • Total Taxes (approx.): KES 997,315
  • Total Landed Cost: KES 985,002 + 997,315 = KES 1,982,317

This calculation illustrates how CRSP and depreciation impact the final cost of importing a vehicle.

Strategies for Navigating the New CRSP Schedule

  1. For Importers:
    • Focus on importing affordable models like the PICANTO SPORT or CERATO S to minimize tax burdens.
    • Prioritize EVs and hybrids like the EV3, EV6, and SORENTO PHEV to leverage potential tax incentives for eco-friendly vehicles.
    • Source vehicles from markets with favorable exchange rates, such as South Korea, to offset high CRSP values.
  2. For Dealers:
    • Offer financing options for premium models like the EV9 GT LINE and CARNIVAL GT-LINE to make them accessible to buyers.
    • Promote the family-friendly features, off-road capabilities, and sustainability of KIA’s SUVs, EVs, and hybrids in marketing campaigns.
    • Partner with customs agents to ensure accurate valuation and streamline clearance processes.
  3. For Consumers:
    • Compare CRSP values to identify cost-effective models like the PICANTO SPORT or RIO S.
    • Consider EVs and hybrids for potential tax breaks and long-term fuel savings.
    • Verify chassis codes and documentation to ensure accurate valuation and avoid disputes during customs clearance.

The Future of KIA Vehicles in Kenya

The 2025 CRSP schedule reinforces KIA’s position in Kenya’s automotive market, with models like the Carnival, Sorento, and EV series catering to families, adventurers, and eco-conscious buyers. Affordable options like the Picanto and Rio broaden the brand’s appeal, while premium models like the EV9 and Stinger target luxury buyers. As Kenya promotes sustainable transport and expands its middle-class market, demand for KIA’s EVs and hybrids is expected to grow, though high CRSP values for premium models may shift focus to more accessible variants. The planned shift to an invoice-based valuation system by July 2025 could streamline costs, benefiting importers and consumers.

The KRA’s 2025 CRSP schedule for KIA vehicles, effective July 1, 2025, introduces updated valuations that impact the cost of importing hatchbacks, sedans, SUVs, and station wagons. By understanding these changes, importers, dealers, and consumers can make informed decisions to navigate Kenya’s automotive market. From the budget-friendly Picanto to the eco-friendly EV9 and family-oriented Carnival, KIA offers diverse options for various needs. Stay proactive, verify valuations, and adopt strategic planning to thrive in this dynamic landscape.