In Kenya, the main taxes that must be paid on imports include Value Added Tax (VAT), Excise Duty, and Customs Duty.
The VAT rate is 16% and is applied to the value of the imported goods plus the cost of freight and insurance. Excise Duty is applied to specific goods such as alcohol and tobacco and the rates vary depending on the item. Customs Duty is a tariff applied to imported goods and the rate varies depending on the type of goods and their origin.
To import goods into Kenya, an importer will need to have a valid VAT registration number and a valid import declaration. They will also need to submit a Bill of Lading or Airway Bill, an invoice, and other relevant documents such as a certificate of origin to clear the goods through Customs. Additionally, depending on the type of goods being imported, other permits or licenses may be required.
It’s also important to note that Kenya is a member of the East African Community (EAC) and thus, goods imported from EAC member countries are eligible for preferential tariffs, under certain conditions. Additionally, Kenya has trade agreements with other countries such as COMESA, which allows for goods imported from COMESA countries to be eligible for preferential tariffs.
As importers seek to navigate the regulations and requirements of importing into Kenya, understanding the taxes and tariffs that apply to their goods is critical. The Kenya Revenue Authority (KRA) is entrusted with the vital role of collecting taxes and customs revenue. For comprehensive information on the specific taxes and fees that may impact their imports, importers are well-advised to consult with a local tax professional such as Zest Logistics or the KRA itself.
Companies such as Zest logistics have created a tax estimate tool to assist those unfamiliar with the subject in determining the amount of taxes they will pay when shipping in Kenya. This tool uses the information provided by the importer such as the type of goods, origin, and value of the goods, to calculate an estimate of the taxes and fees that will be due on the import. This can help importers better understand and budget for the costs associated with importing goods into Kenya.
Overall, the tax system in Kenya is relatively simple and straightforward, and importers can easily understand the taxes and fees that will apply to their imports. However, it is important for importers to consult with a local tax professional or the Kenya Revenue Authority for more information on the specific taxes and fees that may apply to their imports. The use of online platforms such as Zest Booking System can also help to ease the clearance and tax payment process.
