Kenya Import Duty – The Only Guide You Will Need!

Are you interested in importing goods into Kenya? If so, there are a few things you need to know about Kenya import duty. First, note that import duty is levied on the importation of goods under the provisions of the East African Community Customs Management Act, to which Kenya is a signatory. Secondly, note that goods are subject to import duty at varied rates.

Coming up is all the information you need on Kenya import duty.

Types of Import Duty

• Customs Duty
  • This is a tax imposed on all goods brought into Kenya. It is paid at the port of entry. Customs duty is levied at rates between 0 and 100%.
• Excise Duty
  • This is a tax imposed on high-volume daily goods of a luxurious nature like alcoholic beverages and cigarettes, Excise duty is charged on wine or alcoholic beverages at a rate per liter, and is paid in addition to customs duty. This duty is only charged on excisable goods.
• Value Added Tax (VAT)
  • VAT is charged on imported taxable goods, at a rate of 16%. It is levied on the total of CIF (Cost, Insurance, and Freight) value, customs duty, and other applicable charges (packaging, warranty, financing, commissions, etc.)
• Import Declaration Fees (IDF)
  •  This is a levy charged on all imported goods. In Kenya, IDF is charged at 2%.
• Railway Development Fee (RDF)
  • This levy is charged on goods imported for home use to provide funds for the construction of the Standard Gauge Railway. It is currently charged at a rate of 1.5%.

Note: Both IDF and RDF are calculated on the customs value of goods for home use, and must be paid by the importer at the point of entry.

Tariff Bands

• Kenya uses the rates provided by the East Africa Community Common External Tariff (CET) as follows:
  • 0% – applicable to capital goods and raw materials, as well as some species of animals, pharmaceutical products, and organic chemicals.
  • 10% – intermediate goods
  • 25% – finished goods

Sensitive Items

• Sensitive items, as listed in the East African Community Common External Tariff (CET), attract import duties as high as 100%.
• Some of these sensitive items include rice (75%), milk, cream, cheese, and other dairy products (60%), and woven fabrics (50%).

Valuation

• Kenya Import duty valuation is based on the price paid or payable for the imported goods.

Assessment of Customs Duty

• Assessment of customs duty is based on the customs value of the item, as per the rates provided by the EAC Customs Management Act, Excise Act, VAT Act, and all other levies imposed by Kenya government legislature.

Exemptions

• Enterprises that are established within Special Economic Zones Act are exempted from paying import duty on any goods brought into the country.
• Also, machinery and inputs (excluding motor vehicles) imported by a licensed company for use in oil, geothermal, or gas exploration, development, and distribution are exempt from import duty.
• Household items like paintings, tableware, carpets, professional books, and other household and personal effects are classified as duty-free and do not attract any import duty.

EAC Duty Remission Scheme

• Manufacturers that use raw materials that are not subject to 0% import duty to manufacture goods for use locally within the EAC and for export outside the EAC can apply for remission under the EAC duty remission scheme.
• Motor vehicles and motorcycle assemblers are some of the manufacturers who may benefit from this scheme.

Now that you have this guide on Kenya Import Duty all laid out for you, you will not need to look anywhere else for information, as this is the only guide you will need!