KRA Defends Export Declaration Requirement Amid Cargo Clearance Concerns

KRA Defends Export Declaration Requirement Amid Cargo Clearance Concerns

The Kenya Revenue Authority (KRA) has defended a new export declaration requirement for imported goods, saying the measure is backed by law despite concerns from clearing agents, motor vehicle dealers and other importers.

KRA issued the clarification on Monday, September 7, following growing concerns over changes affecting cargo clearance at Kenya’s border points and other entry stations.

The tax authority said it had taken note of complaints raised by the Kenya International Freight and Warehousing Association (KIFWA), clearing agents, vehicle dealers and other industry stakeholders.

“Kenya Revenue Authority (KRA) acknowledges the concerns raised by the Kenya International Freight and Warehousing Association (KIFWA), clearing agents, motor vehicle dealers, and other stakeholders regarding cargo clearance processes.”

According to KRA, importers are legally required to provide documentation showing that goods being brought into Kenya were legitimately exported from the country of origin.

Why KRA Requires Export Declarations

The requirement is anchored in Section 23B of the Tax Procedures Act, which was introduced through the Finance Act 2026 and took effect on September 1.

The provision requires importers to obtain and retain an export declaration, export entry or an equivalent customs export certificate issued by the competent authority in the country of export.

KRA said the documents are intended to help verify the origin, cost and value of imported goods and strengthen customs compliance.

Importers are also required to keep the documents for at least five years from the date of importation.

The records must be produced to KRA when requested during an audit or other compliance exercise.

Failure to provide the required documentation could have significant tax implications for importers.

The authority may reject claims relating to the cost, origin or value of goods and proceed to conduct a fresh tax assessment where the required evidence is unavailable.

The clarification comes amid wider discussions over customs valuation and proposed changes to the customs benchmark used when assessing imported goods.

Motor Vehicle Dealers Await Court Direction

KRA also addressed concerns surrounding the valuation of imported motor vehicles, an issue that has triggered prolonged disagreements between the tax authority and vehicle importers.

The authority said the matter is currently before the courts and declined to discuss the substance of its valuation approach.

“On motor vehicle valuation, the matter is currently before the Court, and we will refrain from commenting on its merits pending the Court’s direction and determination.”

The dispute has involved the Car Importers Association of Kenya (CIAK), which has challenged KRA’s methods of calculating taxes on imported vehicles.

Previous court proceedings also questioned KRA’s updated Current Retail Selling Price framework. Courts found aspects of the framework unconstitutional after determining that the required public participation had not been adequately undertaken.

The findings pushed KRA towards further engagement with industry stakeholders over vehicle valuation methods, including Free on Board (FOB) and other pricing references.

Importers Face Closer Customs Scrutiny

The latest clarification is likely to keep customs documentation and vehicle valuation at the centre of discussions between KRA and importers.

For vehicle dealers and other businesses involved in international trade, the new rules mean greater attention must be paid to documentation obtained from exporting countries.

KRA, however, maintains that the export declaration requirement is not a new discretionary policy but a statutory obligation.

The authority’s position comes as importers continue to seek clarity on customs valuation, documentation and the financial impact of changing clearance requirements.

As the court considers the motor vehicle valuation dispute, KRA has indicated that it will continue enforcing the provisions of the Tax Procedures Act while awaiting further legal direction.

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KRA Defends Export Declaration Requirement Amid Cargo Clearance Concerns