Finance & Investment Market Updates

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

volkswagen golf

The Kenya Revenue Authority (KRA) has released the Current Retail Selling Price (CRSP) schedule for used vehicles, effective July 1, 2025, impacting the importation of Volkswagen vehicles into Kenya. The CRSP serves as the basis for calculating import duties, VAT, excise duties, and other levies, influencing costs for importers, dealers, and consumers. This guide explores the 2025 CRSP schedule for Volkswagen vehicles, providing insights into its implications and strategies for navigating the Kenyan automotive market as of July 1, 2025.

Understanding the KRA CRSP Schedule

The CRSP is a standardized valuation system used by the KRA to determine the customs value of imported used vehicles. This value is critical for calculating:

  • Import Duty: 35% of the customs value.
  • Excise Duty: 25% for engines up to 3000cc, 35% for engines above 3000cc (e.g., Touareg V6).
  • 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 Volkswagen vehicles includes hatchbacks, wagons, coupes, sedans, vans, and electric vehicles, featuring gasoline, diesel, hybrid, and electric powertrains. Models like the Polo, Golf, Tiguan, and ID.4 cater to Kenya’s demand for compact, performance, and eco-friendly vehicles.

Reasons for the 2025 Update

The KRA updates the CRSP schedule to reflect:

  • Currency Fluctuations: Changes in the Kenyan Shilling’s value against the Euro impact import costs.
  • Market Trends: Growing demand for compact hatchbacks, SUVs, and electric vehicles influences pricing.
  • Government Policies: Incentives for electric and hybrid vehicles, alongside tax adjustments, shape CRSP values.
  • Global 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 dynamics as of July 1, 2025.

Key Highlights of the 2025 CRSP Schedule for Volkswagen Vehicles

The 2025 CRSP schedule covers Volkswagen’s diverse lineup, from the compact Up! to the premium Arteon and electric ID.4. Below is a detailed breakdown of selected models, categorized by vehicle type, with CRSP values in Kenyan Shillings (KES).

Hatchbacks

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel TypeSeats
POLOTSI COMFORTLINEAT2WD10001,768,724Gasoline
POLOTSI R-LINEAT2WD10003,683,728Gasoline
GOLFETSI ACTIVE BASICAT2WD9903,565,504Gasoline
GOLFGTI TCRAT2WD20007,563,975Gasoline

Wagons and SUVs

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel TypeSeats
T-CROSSTSI ACTIVEAT2WD10003,462,178Gasoline
GOLF VARIANTETSI STYLE PLATINUMAT2WD15005,604,150Gasoline
TIGUANTSI R LINEAT2WD15005,326,100Diesel
TOUAREGV6 UPGRADE PACKAGEAT4WD36005,581,899Gasoline

Coupes and Sedans

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel TypeSeats
THE BEETLEDESIGN MEISTERAT2WD12004,289,363Gasoline
PASSATETSI ELEGANCEAT2WD15006,479,708Gasoline
ARTEONTSI 4MOTION R LINEAT4WD20004,532,601Gasoline

Vans

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel TypeSeats
CARAVELAT2WD200011,882,960Diesel
CALIFORNIABEACHAT4WD200020,371,482Diesel

Electric Vehicles

ModelVariantTransmissionDriveEngine (cc)CRSP (KES)Fuel TypeSeats
ID.4LITEAT2WD05,135,034Electric
ID.4PROAT2WD06,435,944Electric

Implications for the Kenyan Automotive Market

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

For Importers

  • Premium Models: High-end models like the CALIFORNIA BEACH (KES 20,371,482) and GOLF R 20 YEARS (KES 9,631,752) face higher import duties due to elevated CRSP values, potentially limiting import volumes.
  • Eco-Friendly Options: Electric models like the ID.4 PRO (KES 6,435,944) and hybrids like the GOLF VARIANT ETSI (KES 4,912,605) may benefit from tax incentives, encouraging imports.
  • Depreciation Advantage: Importing older models (e.g., 2018 models with 65% depreciation) reduces customs values, making models like the UP! MOVE UP! (KES 1,348,262) more viable.

For Dealers

  • Pricing Strategies: High CRSP values for models like the ARTEON SHOOTING BRAKE (KES 8,208,625) require competitive pricing or financing options to attract buyers.
  • Inventory Focus: Affordable models like the POLO TSI COMFORTLINE (KES 1,768,724) and T-CROSS TSI 1ST (KES 2,338,175) appeal to budget-conscious consumers, prompting dealers to prioritize these variants.
  • Marketing Opportunities: Highlighting the performance of the GOLF GTI, the versatility of the Tiguan, and the eco-friendliness of the ID.4 can attract diverse customers.

For Consumers

  • Performance Appeal: Models like the GOLF GTI and POLO GTI cater to enthusiasts seeking sporty driving experiences.
  • Eco-Conscious Choices: The ID.4 and GOLF ETSI variants attract buyers seeking sustainable options with potential tax benefits.
  • Utility and Affordability: Compact models like the Polo and T-Cross appeal to urban drivers and small families needing practical transport solutions.

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 Volkswagen Polo TSI Comfortline (CRSP KES 1,768,724, 1000cc, 2018 model):

  • Depreciation: 65% (2018 model) → Customs Value = 1,768,724 × (1 – 0.65) = KES 619,053
  • Import Duty: 35% of 619,053 = KES 216,669
  • Excise Duty: 25% of (619,053 + 216,669) = KES 208,931
  • VAT: 16% of (619,053 + 216,669 + 208,931) = KES 167,144
  • IDF: 3.5% of 619,053 = KES 21,667
  • RDL: 2% of 619,053 = KES 12,381
  • Total Taxes (approx.): KES 626,792
  • Total Landed Cost: KES 619,053 + 626,792 = KES 1,245,845

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:
    • Prioritize models like the UP! MOVE UP! (KES 1,348,262) or POLO TSI COMFORTLINE (KES 1,768,724) to minimize tax burdens.
    • Focus on electric and hybrid variants like the ID.4 and GOLF ETSI to leverage potential tax incentives.
    • Source vehicles from Europe for better pricing and clear histories, leveraging reliable import agents.
  2. For Dealers:
    • Offer financing options for premium models like the ARTEON and GOLF R to make them accessible.
    • Promote the affordability, reliability, and eco-friendly features of Volkswagen’s lineup in marketing campaigns.
    • Collaborate with customs agents to ensure accurate valuation and streamline clearance processes.
  3. For Consumers:
    • Compare CRSP values to identify cost-effective models like the POLO or T-CROSS.
    • Consider electric and hybrid models for potential tax breaks and fuel savings.
    • Verify chassis codes and documentation to ensure accurate valuation and avoid customs disputes.

The Future of Volkswagen Vehicles in Kenya

The 2025 CRSP schedule strengthens Volkswagen’s position in Kenya’s automotive market, with models like the Polo and Golf appealing to urban drivers, while the Tiguan and T-Cross cater to families and adventure seekers. The ID.4 aligns with the push for sustainable transport, and affordable options like the Up! broaden the brand’s reach. As Kenya’s middle class grows and demand for compact, eco-friendly vehicles increases, Volkswagen’s reputation for quality and innovation positions it well, potentially benefiting from tax incentives. The anticipated shift to an invoice-based valuation system by July 2025 could streamline costs, benefiting importers and consumers. Volkswagen’s focus on performance, efficiency, and sustainability ensures competitiveness against rivals like Toyota and Nissan.

The KRA’s 2025 CRSP schedule for Volkswagen vehicles, effective July 1, 2025, introduces updated valuations that shape the cost of importing hatchbacks, wagons, sedans, and electric vehicles. By understanding these changes, importers, dealers, and consumers can make informed decisions in Kenya’s dynamic automotive market. From the sporty GOLF GTI to the versatile Tiguan and electrified ID.4, Volkswagen offers a vehicle for every need. Stay proactive, verify valuations, and adopt strategic planning to thrive in this competitive landscape.