This archive report was first published on 23 October 2019.
On October 23, 2019, the High Court of Mombasa made a landmark ruling that declared the current tax imposed by the Kenya Revenue Authority on second-hand cars to be illegal.
The court's decision was a result of a petition filed by the Car Importers Association of Kenya, which argued that the tax was unconstitutional and unfair.
The Kenya Revenue Authority had been using the price quotations of new vehicle dealers as the basis for determining the import duties and other levies on second-hand cars.
However, the car dealers complained that these quotations were often high, leading to unfair taxes that ran into millions of shillings on the used cars.
The court's ruling is expected to significantly reduce the taxes imposed on used motor vehicles in the coming months.
