Import Duty
Customs tax on imported goods based on the EAC Common External Tariff. Comprehensive guide to rates, procedures, and compliance for all importers in Kenya.
What is Import Duty?
Understanding customs taxation in Kenya
Import Duty is a customs tax levied on goods imported into Kenya from countries outside the East African Community (EAC). Based on the EAC Common External Tariff (CET), rates are determined by product classification using the Harmonized System (HS) codes. The duty protects local industries while generating government revenue and facilitating regional trade integration.
EAC Common External Tariff
Unified tariff structure applied by all EAC member states (Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan) on imports from non-EAC countries to promote regional integration.
HS Code Classification
Goods are classified using 6-digit Harmonized System codes that determine the applicable duty rate. Correct classification is crucial for accurate duty calculation and compliance.
CIF Value Basis
Duty is calculated on the CIF (Cost, Insurance, and Freight) value, which includes the cost of goods, insurance, and freight charges to the port of destination in Kenya.
Payment Before Clearance
All import duties and taxes must be paid before goods can be cleared from customs. Payment can be made through banks, mobile money, or online platforms.
EAC Common External Tariff Bands
Three-tier tariff structure for different product categories
Raw Materials
Essential inputs for production
- Agricultural raw materials (cotton, sisal)
- Industrial raw materials (iron ore, copper)
- Crude petroleum and natural gas
- Precious stones and metals (unprocessed)
- Timber and forest products (raw)
- Mining products (unprocessed ores)
- Live animals and fish for breeding
Intermediate Goods
Semi-processed inputs for further manufacturing
- Capital goods and machinery
- Spare parts and components
- Chemical inputs and compounds
- Electrical components and parts
- Pharmaceutical ingredients
- Textile yarns and fabrics
- Electronic components and semiconductors
Finished Products
Final consumer and industrial products
- Motor vehicles and motorcycles
- Consumer electronics and appliances
- Clothing and textile products
- Furniture and home products
- Processed food and beverages
- Cosmetics and personal care products
- Toys, games, and sporting goods
Important CET Information
- Sensitive Items List: Some products have higher rates up to 100% to protect local industries
- EAC Origin: Goods from EAC countries are duty-free with proper certificates of origin
- Special Arrangements: COMESA, AGOA, and EPA agreements may offer preferential rates
- HS Code Accuracy: Correct classification is essential - misclassification can lead to penalties
- Valuation Rules: WTO valuation methods apply - transaction value is the primary basis
Import Duty Calculator
Calculate import duty, VAT, and total cost for your imports. Enter the CIF value and select the appropriate tariff band to get accurate duty calculations.
Customs Clearance Procedures
Step-by-step import process and requirements
Pre-Arrival (Before Goods Arrive)
Obtain Import License
Acquire necessary import licenses from relevant authorities (KEBS, KRA, sectoral regulators) for restricted goods before shipment.
Pre-shipment Verification
For applicable goods, arrange pre-shipment verification of conformity (PVoC) with appointed agencies before shipment to Kenya.
Prepare Documentation
Ensure all required documents are ready: commercial invoice, packing list, bill of lading, certificate of origin, and insurance documents.
KRA PIN Registration
Ensure your business is registered with KRA and has a valid PIN. First-time importers must complete importer registration.
At Port of Entry
Submit Import Declaration
File import declaration form (C21/C22) through SIMBA system with accurate goods description, HS codes, and values.
Risk Assessment & Inspection
Customs conducts risk assessment and may select goods for physical examination, documentary review, or scanner inspection.
Duty Assessment
Customs officer verifies classification, valuation, and calculates applicable duties and taxes based on CIF value and HS codes.
Payment & Clearance
Pay all assessed duties and taxes, obtain clearance documents, and arrange cargo collection with proper identification.
Key Processing Times
Required Import Documents
Essential documentation for customs clearance
Mandatory Documents for All Imports
| Document | Purpose | Issued By | Notes |
|---|---|---|---|
| Import Declaration Form (IDF) | Customs declaration | Importer/Agent | Filed through SIMBA system |
| Commercial Invoice | Value determination | Supplier/Exporter | Must show accurate values |
| Packing List | Cargo verification | Supplier/Exporter | Detailed contents description |
| Bill of Lading/Airway Bill | Title to goods | Carrier/Freight Forwarder | Original required for release |
| Certificate of Origin | Preferential duty rates | Exporting Country Authority | Required for duty preferences |
| Insurance Certificate | CIF value calculation | Insurance Company | Shows insured value |
Additional Documents (Product-Specific)
| Product Category | Additional Requirements | Issuing Authority | Purpose |
|---|---|---|---|
| Food & Agricultural Products | KEPHIS Import Permit, Health Certificate | KEPHIS, Country of Origin | Food safety & plant health |
| Pharmaceuticals | Pharmacy & Poisons Board Permit | PPB | Drug safety & registration |
| Motor Vehicles | NTSA Inspection, Age Certificate | NTSA, Authorized Agent | Vehicle standards compliance |
| Textiles & Clothing | KEBS Certificate of Conformity | KEBS/Appointed Agent | Quality standards verification |
| Electronics | Type Approval Certificate | CA/KEBS | Technical standards compliance |
| Chemicals | NEMA Import Permit | NEMA | Environmental protection |
Special Import Procedures
Warehousing, transit, and special regimes
Customs Warehousing
Store imported goods in customs-controlled warehouses without paying duties until goods are withdrawn for home consumption.
Benefits: Deferred duty payment, cash flow management, re-export opportunities
Transit Procedures
Transport goods through Kenya to neighboring countries without payment of local duties, under customs supervision.
Requirements: Guarantee deposit, sealed transport, designated routes
Manufacturing Under Bond
Import raw materials and components duty-free for manufacturing, with duty paid only on the finished product proportion consumed locally.
Advantage: Export promotion, lower production costs, competitive pricing
Duty-Free Shops
Retail outlets selling duty-free goods to international travelers at airports and other designated locations.
Eligible: Departing international passengers with valid travel documents
Common Import Issues & Solutions
Avoid these costly mistakes and delays
Incorrect HS Code Classification
Wrong classification leads to incorrect duty rates, potential penalties, and clearance delays. Customs may reclassify and impose additional duties.
Solution: Consult official HS code directories, seek pre-classification rulings from KRA
Undervaluation of Goods
Declaring values below market price to reduce duties can result in upward valuation adjustments, penalties, and prosecution.
Solution: Declare accurate transaction values, maintain supporting price documentation
Incomplete Documentation
Missing or incomplete documents cause clearance delays, demurrage charges, and may lead to goods being held or re-exported.
Solution: Prepare comprehensive document checklist, verify all requirements pre-shipment
Non-compliance with Standards
Importing goods that don't meet Kenyan standards can result in rejection, destruction, or expensive remedial measures.
Solution: Verify Kenya Bureau of Standards requirements, obtain pre-export verification
Frequently Asked Questions
Expert answers to common import duty questions
How do I determine the correct HS code for my imported goods?
Use the official East African Community Harmonized System (HS) code directory available on the KRA website. Start with the general product category and work down to specific characteristics. You can also request a binding tariff classification ruling from KRA before importing to ensure accuracy and avoid disputes.
What happens if I disagree with the customs valuation of my goods?
You can appeal the valuation decision through KRA's internal review process. Provide supporting documentation such as purchase invoices, market price evidence, or independent valuations. If unsatisfied, you can escalate to the Tax Appeals Tribunal. However, you must pay the assessed duty first before appealing.
Can I claim duty refund if I overpaid import duties?
Yes, you can claim a refund for overpaid duties within four years of payment. Submit a refund application through the KRA iTax portal with supporting documents including payment receipts, correct classification evidence, and duty calculations. KRA will verify the claim before processing the refund.
Are there any goods that qualify for duty-free treatment?
Yes, several categories qualify for duty-free treatment: goods from EAC countries with valid certificates of origin, raw materials under the CET, goods for diplomatic missions, returning residents' personal effects, goods under COMESA arrangements, and items qualifying under AGOA or EPA agreements. Specific conditions apply to each category.
How long can goods remain in customs warehouse before paying duty?
Goods can remain in customs warehouse for up to two years, renewable for additional periods with proper justification. However, warehouse rent and handling charges continue to accrue. After the maximum period, unclaimed goods may be disposed of by public auction to recover storage costs and duties.
What is the difference between CIF and FOB values for duty calculation?
CIF (Cost, Insurance, Freight) includes the cost of goods, insurance, and freight charges to Kenya's port. FOB (Free on Board) only includes the cost of goods at the origin port. Import duty is calculated on CIF value, so you must add insurance and freight costs to the FOB value to determine the correct duty base.