New car owners face higher taxes as importers raise concerns

Motor vehicle importers have raised concerns over the sharp increase in the cost of clearing vehicles at the port of Mombasa, accusing the Kenya Revenue Authority (KRA) of policy shifts that have significantly driven up prices. According to the importers, the tax man has moved away from the current retail selling price valuation method and reverted to physical, on-site inspection of vehicles, a move that they say has introduced inconsistencies in valuation. This results in officials assigning varying values to similar vehicles. This, they argue, has resulted in inflated duty charges and ultimately higher retail prices for consumers.