This archive report was first published on 23 October 2019.
On October 23, 2019, the High Court in Mombasa delivered a landmark ruling that declared the Kenya Revenue Authority's (KRA) method of taxing used motor vehicles as unconstitutional.
The court, presided over by Justice Eric Ogola, ruled in favor of the Car Importers Association of Kenya, finding that KRA's taxation of used cars was unfair and arbitrary.
Dealers, including Toyota Kenya, had been providing KRA with inflated price quotations, known as current retail selling prices (CRSP), which resulted in higher taxes for used imports.
Justice Ogola declared that the CRSP was unconstitutional and ordered KRA to create a new price list in consultation with used car dealers.
The judge also criticized KRA for claiming higher taxes, including modifications and questionable data, stating that the current tax process was based on 'guesswork' leading to ambiguity and unfair treatment of importers.
