KRA Explains Why Some Car Import Taxes Will Triple Beginning July 1

Hello and welcome to the Money News Roundup. Today, we’re covering the Kenya Revenue Authority’s (KRA) justification for the tripling of import taxes under the new CRSP system, Taxman’s new chatbot, and a breakdown of Kenya's biggest money market funds by assets.

KRA Explains Tripling of Some Car Import Taxes Under CRSP

A week after the Kenya Revenue Authority (KRA) unveiled a new Current Retail Selling Price (CRSP) system, the taxman is doubling down on its explanation for why taxes on some cars will increase threefold.

According to Business Daily, KRA Commissioner of Customs and Border Control Lilian Nyawanda attributed the steep increase to a lengthy delay in adjusting the rates, noting that CRSP had not been updated since 2009.

Nyawanda further explained that past attempts to revise the CRSP had been hampered by opposition from some stakeholders.

What KRA is Saying: “In 2020, the authority's attempt to review the CRSP was contested by stakeholders in court. As a result, the current list has remained unchanged since 2019. There has therefore been a need to review the CRSP in consultation with stakeholders to reflect emerging changes in the sector,” she said.

“Furthermore, many new and advanced vehicle models have entered the market, which are not included in the 2019 CRSP.”

The Numbers: According to KRA, the import duty rate for some models has increased from 25% in 2019 to 35% in 2025. Additionally, the new CRSP list includes over 5,200 unique models, compared to about 3,000 in 2019.

Some of the affected models include:

• Suzuki Swift – Taxes increased from Ksh253,574 to Ksh623,503 (a 145% jump)
  
  
• Toyota Vitz Hybrid F – Will now cost Ksh3,440,622
  
  
• Toyota Prado TX-L-E4 – Will cost Ksh9,095,659
  
  
• Mazda CX-5 20S – Will cost Ksh6,839,016
  
  

Catch Up Quick: At the end of last month, KRA announced it was changing how it calculates base taxes—moving from a fixed retail price to the actual price paid for each vehicle. While this system has faced backlash from stakeholders, KRA says it aims to make tax calculations fairer and reduce disputes between importers and the tax authority.

Biggest Money Market Funds According to CMA

On Friday, the Capital Markets Authority (CMA) released a list of the largest Money Market Funds (MMFs) in Kenya by asset base.

In its Collective Investment Schemes (CIS) Quarterly Report, the CMA revealed the following rankings:

1. CIC Money Market Fund – Ksh81.8 billion (25.6% market share)
   
   
2. Sanlam Money Market Fund – Ksh72.2 billion (22.6% market share)
   
   
3. ICEA Lion Money Market Fund – Ksh20.1 billion (6.3% market share)

(See the full list here.)

Kenya’s Labour Market Feels the Squeeze as Tax Growth Slows

Taxes on workers’ salaries, allowances, and wages rose by a modest 5.4 percent in the nine months leading up to March 2025 — the slowest increase in over a decade, excluding the pandemic period. According to Business Daily, this sluggish growth highlights a worsening job crisis as more companies turn to temporary employment contracts to cut costs.

According to data from the National Treasury, the Kenya Revenue Authority collected Sh412.10 billion in Pay As You Earn (PAYE) tax during this period, up slightly from Sh390.96 billion the previous year. The minimal increase underscores a toughening labour market, with limited formal job opportunities and widespread salary freezes across most sectors.

KRA Rolls Out Chatbot to Boost MSME Tax Compliance

The Kenya Revenue Authority (KRA) has launched an online chatbot to help micro, small, and medium enterprises (MSMEs) access tax services and information more easily. As per People Daily, the tool is designed to simplify registration, filing, and tax payments, making it easier for MSMEs to comply voluntarily.

Unveiled during an MSME roundtable in Nairobi, the chatbot aims to close the gap between MSMEs’ economic impact and their low contribution to tax revenue. It will provide real-time answers to compliance questions and support KRA’s wider tax digitization efforts.

This move is part of KRA’s shift from enforcement to education and support. It aligns with broader efforts to bring informal businesses into the formal economy. Leaders like James Mureu from MSEA welcomed the chatbot, seeing it as a step toward deeper collaboration with MSMEs.