Kenyans to Spend More on Vehicle Taxes as KRA Unveils New Price List 

Hello Moneymakers, Washington here. In this newsletter, we are covering the new Current Retail Selling Price (CRSP) that will see taxes on small engine vehicles rise by over Ksh150,000. We also explain why you could soon be paying more for rice.

Situational Awareness: The National Treasury has announced that CS John Mbadi will read the Budget Statement for the FY 2025/26 on Thursday, June 12, 2025, from 3:00 p.m. in Parliament.

More Taxes for Car Buyers

Kenyans are set to pay more in taxes after the taxman published the Current Retail Selling Price (CRSP) for vehicles.

According to the Business Daily, taxes on some imports will rise by as high as 145 per cent. In terms of currency, the taxes on small engine vehicles could rise by over Ksh150,000.

The affected vehicles include the Mazda Demio and Toyota Vitz.

For instance, the tax on a 1.5-litre petrol-powered Mazda Demio is set to rise to Ksh467,350, up from Ksh247,109, following an increase in the car's CRSP (showroom price) from Ksh1.67 million to Ksh3.39 million.

Conversely, some of the vehicles, such as the Lexus LX570 and the Volkswagen Tiguan, have their taxes reduced.

For instance, wealthy buyers of the Lexus LX570, priced above Ksh14 million, will benefit from a 29 per cent tax cut, with total taxes falling from Ksh4.81 million to approximately Ksh3.41 million.

The new CRSP will take effect from July 1 following consultations with stakeholders.

“The Kenya Revenue Authority (KRA) wishes to inform the public that, effective 1st July, 2025, a new Current Retail Selling Price (CRSP) schedule will be applied in the computation of customs value for used motor vehicles imported into the country,” read the statement in part.

“The updated CRSP list has been published on the KRA website. Importers and other stakeholders are therefore encouraged to visit the page and familiarise themselves with the new list and acquaint themselves with the changes.”

World Bank Raises Concerns Over Budget Deficit

The World Bank has raised concerns over Kenya’s budget deficit, a month away from the new financial year.

In a report by the People Daily, the financial institution noted that key government initiatives, such as development projects, were to be affected as the country struggles to raise its revenues amid high debt repayments.

It was noted that Kenya was at high risk of debt distress. Notably owing to the budget deficits, the government has to borrow to meet its development commitments.

"The latest joint World Bank-International Monetary Fund low-income country debt sustainability analysis (November 2024) classifies Kenya at high risk of debt distress. 

“Although the maturity profile has improved, rising non-concessional borrowing costs could further elevate the risk by increasing rollover and liquidity pressures," read the report by the World Bank.

Kenyans to Spend More on Rice 

In a report by the Business Daily, Kenyans could soon be forced to spend more on rice after the government announced that it was cutting down the importation of rice.

Agriculture and Food Authority (AFA) DG, Bruno Linyiru, explained that the move was to protect local farmers.

Kenya relies on imports from other countries to supplement what the farmers produce. For instance, in 2024, Kenya imported rice worth Ksh67.8 billion.

Therefore, with the fluctuating production and limited supply in Kenya, Kenyans could soon be facing higher prices due to high demand and limited supply.

‍PSC Announces 1,000 Paid Internship Opportunities for Teachers 

On MyGov, the Public Service Commission has announced mass recruitment of 1,000 graduate teachers to support the government’s digital literacy programme.

According to PSC, the interns will be joining various schools for 12 months and will be teaching Primary School teachers on the use of digital literacy devices.

The application is open to those with a Bachelor’s degree in Education with specialisation in Information Communication Technology or a Bachelor’s degree in ICT, or a Diploma in ICT or ICT Integration in Education, from a recognised institution.

“For appointment to this internship position, a candidate must have graduated not earlier than 2020, and be knowledgeable in networking and infrastructure, applications development, information security and project management,” read the notice in part.

“Interested and qualified applicants are requested to make their applications online through the Public Service Commission’s job portal accessible through www.publicservice.go.ke or www.psckjobs.go.ke, or www.pscims.publicservice.go.ke/jobs  by 23rd June, 2025.