The High Court has put brakes on a new valuation list released by Kenya Revenue Authority (KRA) that was set to change how much Kenyans pay in taxes when importing used vehicles.

In an urgent ruling issued on Monday, the court suspended KRA’s updated Current Retail Selling Price (CRSP) list, which was supposed to come into effect on July 1, 2025.

The decision gives breathing space to importers and car buyers until the court hears and determines the case later this month.

The CRSP list is what KRA uses to settle on the value of a used car for tax purposes when it lands in Kenya.

Higher CRSP values mean higher import taxes.

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The new list had triggered widespread concern, especially from used car importers, many who felt blindsided by the sudden changes by the taxman.

According to the court papers, the petitioner argues that:

• Kenyans were not properly consulted before the new list was introduced.

• KRA only spoke to car dealers but left out the public and consumers who also bear the cost.

• The list was rushed, is full of errors, and KRA failed to adhere to constitutional and legal processes like presenting it to Parliament for scrutiny before implementation.

The court heard that the new CRSP list:

• Left out several popular car models entirely.

• Contained inaccurate information, like wrong fuel types or features for certain models.

• Gave different tax values for the same car model, causing confusion.

• Ignored the reality that many vehicles had already been ordered or were en route to Kenya under the previous 2019 CRSP list.

This, the petitioner argues, unfairly punishes importers who made financial commitments based on the older tax rules.

Industry players also argued that importing a car typically takes 3 to 6 months, including procurement, shipping, and clearance hence the 30-day notice by KRA for the new CRSP list was unfair and unrealistic.

The court has temporarily barred KRA from implementing the new CRSP list until July 17, 2025, when the matter will come up again in court.

The Kenya Revenue Authority has been instructed to respond to the case, and the petitioner wants them to provide proof of public participation and explain how the list was developed.

If you are importing a used car or are planning to, this ruling could save you a substantial amount for now as players cross their fingers for a favourable court decision eventually.

The case also raises important questions about transparency, public involvement, and fairness in how tax decisions are made in Kenya.