The Kenya Revenue Authority (KRA) has revised its taxation of used car imports, raising the duty payable on prices of some Mercedes and Mazda models by more than 50 per cent.
The new move is expected to increase the prices of the models by between Sh. 145,000 and Sh. 364,000.
Total taxes on the Mercedes E250 CDI with a 1.8-litre engine rose to Sh910,801 from the previous Sh546,481, a two-thirds increase.
A 1.8-litre, two-wheel drive Mazda Axela is now taxed Sh397,437 or 57.7 per cent higher compared to Sh252,017 based on the previous tax computation.
Duty on a four-wheel drive Mazda Axela with a 1.8-litre engine jumped by a similar margin to Sh413,523 from Sh267,361.
Impact of higher tax base on 8-year car imports
Changes took effect from June
| Model | New duty | Old | Change (%) |
|---|---|---|---|
| Mazda Axela (1.8L,2WD) | 397,437 | 252,017 | 57.7 |
| Mazda Axela (1.8L, 4WD) | 413,523 | 267,361 | 57.6 |
| Mercedes E250 CGI (1.8L) | 910,801 | 546,481 | 66.6 |