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 Volvo 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 Volvo 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.
- 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 Volvo vehicles includes SUVs, sedans, station wagons, and electric vehicles, featuring gasoline, diesel, hybrid, plug-in hybrid, and electric powertrains. Models like the C40 Recharge, S60, V90, and XC90 cater to Kenya’s demand for luxury, eco-friendly, and versatile 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 Swedish Krona impact import costs.
- Market Trends: Increasing demand for electric vehicles, hybrids, and premium SUVs 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 Volvo Vehicles
The 2025 CRSP schedule covers Volvo’s premium lineup, from the electric C40 Recharge to the luxurious XC90 and versatile V60. Below is a detailed breakdown of selected models, categorized by vehicle type, with CRSP values in Kenyan Shillings (KES).
SUVs
| Model | Variant | Transmission | Drive | Engine (cc) | CRSP (KES) | Fuel Type | Seats |
|---|---|---|---|---|---|---|---|
| C40 RECHARGE | PLUS SINGLE MOTOR | AT | 2WD | 0 | 8,337,950 | Electric | 5 |
| EX30 | ULTRA SINGLE MOTOR EXTENDED RANGE | AT | 2WD | 0 | 9,472,423 | Electric | 5 |
| XC40 RECHARGE | ULTIMATE TWIN MOTOR | AT | 4WD | 0 | 6,247,331 | Electric | 5 |
| XC60 | B5 AWD INSCRIPTION | AT | 4WD | 2000 | 11,199,696 | Hybrid | 5 |
| XC90 | T6 AWD INSCRIPTION | AT | 4WD | 2000 | 21,247,168 | Gasoline | 5 |
Sedans
| Model | Variant | Transmission | Drive | Engine (cc) | CRSP (KES) | Fuel Type | Seats |
|---|---|---|---|---|---|---|---|
| S60 | T5 INSCRIPTION | AT | 2WD | 2000 | 12,985,824 | Gasoline | 5 |
| S60 | RECHARGE ULTIMATE T6 AWD PLUG IN HYBRID | AT | 4WD | 2000 | 12,002,715 | Plug-In Hybrid | 5 |
| S90 | RECHARGE ULTIMATE T8 AWD PLUGIN HYBRID | AT | 4WD | 2000 | 12,611,325 | Plug-In Hybrid | 5 |
Station Wagons
| Model | Variant | Transmission | Drive | Engine (cc) | CRSP (KES) | Fuel Type | Seats |
|---|---|---|---|---|---|---|---|
| V60 | D4 CLASSIC | AT | 2WD | 2000 | 3,647,069 | Diesel | 5 |
| V60 | RECHARGE ULTIMATE T6 AWD PLUGIN HYBRID | AT | 4WD | 2000 | 18,527,378 | Plug-In Hybrid | 5 |
| V90 | B6 AWD R-DESIGN | AT | 4WD | 2000 | 21,739,955 | Hybrid | 5 |
| V90 | CROSS COUNTRY T5 AWD | AT | 4WD | 2000 | 14,503,607 | Gasoline | 5 |
Implications for the Kenyan Automotive Market
The 2025 CRSP schedule for Volvo vehicles has significant implications for importers, dealers, and consumers, particularly in the luxury and eco-friendly vehicle segments.
For Importers
- Premium Models: High-end models like the V90 B6 AWD R-DESIGN (KES 21,739,955) and XC90 T6 AWD INSCRIPTION (KES 21,247,168) face substantial import duties due to elevated CRSP values, potentially limiting import volumes.
- Eco-Friendly Options: Electric models like the XC40 RECHARGE (KES 6,247,331) and hybrids like the S60 ULTIMATE B4 (KES 8,610,047) 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 V60 D4 CLASSIC (KES 3,647,069) more viable.
For Dealers
- Pricing Strategies: High CRSP values for models like the V60 RECHARGE ULTIMATE (KES 18,527,378) require tailored financing or leasing options to attract buyers.
- Inventory Focus: Affordable models like the V60 D4 CLASSIC (KES 3,647,069) and XC40 RECHARGE (KES 6,247,331) appeal to eco-conscious consumers, prompting dealers to prioritize these variants.
- Marketing Opportunities: Highlighting the luxury of the S90, the off-road capability of the XC90, and the eco-friendliness of the C40 Recharge can attract diverse customers.
For Consumers
- Luxury Appeal: Models like the S90 and V90 cater to buyers seeking premium sedans and wagons with advanced features.
- Eco-Conscious Choices: Electric vehicles like the C40 Recharge and EX30, along with plug-in hybrids like the XC60 T8, attract buyers seeking sustainable options with potential tax benefits.
- Versatility: SUVs like the XC40 and station wagons like the V60 appeal to families and adventure seekers needing practical yet luxurious 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 Volvo V60 D4 Classic (CRSP KES 3,647,069, 2000cc, 2018 model):
- Depreciation: 65% (2018 model) → Customs Value = 3,647,069 × (1 – 0.65) = KES 1,276,474
- Import Duty: 35% of 1,276,474 = KES 446,766
- Excise Duty: 25% of (1,276,474 + 446,766) = KES 430,810
- VAT: 16% of (1,276,474 + 446,766 + 430,810) = KES 344,648
- IDF: 3.5% of 1,276,474 = KES 44,677
- RDL: 2% of 1,276,474 = KES 25,529
- Total Taxes (approx.): KES 1,292,430
- Total Landed Cost: KES 1,276,474 + 1,292,430 = KES 2,568,904
This calculation illustrates how CRSP and depreciation impact the final cost of importing a vehicle.
Strategies for Navigating the New CRSP Schedule
- For Importers:
- Prioritize models like the V60 D4 CLASSIC (KES 3,647,069) or XC40 RECHARGE (KES 6,247,331) to minimize tax burdens.
- Focus on electric and hybrid variants like the C40 Recharge and S60 B4 to leverage potential tax incentives.
- Source vehicles from Europe for better pricing and clear histories, leveraging reliable import agents.
- For Dealers:
- Offer financing options for premium models like the XC90 and V90 to make them accessible.
- Promote the luxury, reliability, and eco-friendly features of Volvo’s lineup in marketing campaigns.
- Collaborate with customs agents to ensure accurate valuation and streamline clearance processes.
- For Consumers:
- Compare CRSP values to identify cost-effective models like the V60 D4 or XC40 Recharge.
- 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 Volvo Vehicles in Kenya
The 2025 CRSP schedule reinforces Volvo’s position in Kenya’s premium automotive market, with models like the S60 and V90 appealing to luxury sedan and wagon buyers, while the XC40, XC60, and XC90 cater to SUV enthusiasts. The C40 Recharge and EX30 align with the push for sustainable transport, and affordable options like the V60 D4 broaden the brand’s reach. As Kenya’s affluent class grows and demand for eco-friendly and luxury vehicles increases, Volvo’s reputation for safety, innovation, and sustainability 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. Volvo’s focus on electrification, luxury, and versatility ensures competitiveness against rivals like BMW and Mercedes-Benz.
The KRA’s 2025 CRSP schedule for Volvo vehicles, effective July 1, 2025, introduces updated valuations that shape the cost of importing SUVs, sedans, station wagons, and electric vehicles. By understanding these changes, importers, dealers, and consumers can make informed decisions in Kenya’s dynamic automotive market. From the electrified C40 Recharge to the luxurious XC90 and versatile V60, Volvo offers a vehicle for every premium need. Stay proactive, verify valuations, and adopt strategic planning to thrive in this competitive landscape.
