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KRA's Cargo Certificate Rule Threatens Small Importers

KRA's Cargo Certificate Rule Threatens Small Importers

The compulsory requirement for all shipments entering Kenya to include a Certificate of Origin is expected to significantly affect small operators who combine cargo, according to traders.

The Kenya Revenue Authority (KRA) has mandated that starting July 1, all imports must be accompanied by the specified certificate issued by an authorized body.in the exporting country.

Importers, customs clearing agents and the general public has been warned since then.

To ensure a seamless shift, a temporary period until September1, The year 2025 has been allocated to assist with adherence to regulations and give importers sufficient time to obtain the necessary paperwork.

"Keep in mind that after this period, shipments that do not meet the requirements will be subject to seizure according to the provisions of the Act," Commissioner for Customs and Border Control,Lilian Nyawanda, stated in the notice.

This represents a significant departure from previous procedures, in which Certificates of origin were needed solely for products covered by preferential trade agreements to establish their origin and grant tariff advantages.

A recognized official entity means a governmental department or officially appointed organization in the country from which goods are exported, that has the power to issue certificates of origin.

A Certificate of Origin is considered valid when it includes the name and address of both the exporter and the importer, the port of origin, a precise description of the items, the quantity of the goods, the country of origin; and the country of destination.

Failure to comply will result in the KRA imposing penalties, leading to the confiscation or loss of goods by the Commissioner or an authorized officer.

"KRA continues to focus on promoting legal trade while maintaining complete adherence to the law," Nyawanda stated in the announcement.

The Shippers Council of Eastern Africa (SCEA), which advocates for the interests of importers and exporters, has expressed concerns, stating that the action will affect small traders, particularly those who consolidate cargo. It also describes the move as a "big surprise," referring to the requirement of a standard certificate that does not offer any preferences.

As per SCEA, it has become more frequent for importers to obtain products from carriers that combine shipments from various countries.

For instance, a shipping company located in Singapore might acquire goods from multiple nations including China, Hong Kong, Indonesia, and Malaysia, and then combine the freight into one delivery heading to Kenya.

"In such a situation, we aim to learn about the necessary documentation when importing into Kenya: Does the shipper based in Singapore need to present individual certificates of origin from each original source? We will continue seeking further advice and also request exemptions," said Agayo Ogambi, CEO of SCEA, to the Star.

Trade Agreement for Simplifying Commerce under the World Trade Organization, building onGeneral Agreement on Tariffs and Trade (GATT) Article VIII, emphasisses thatcharges, procedures, and paperwork—including certificates of origin—should be kept to a minimum.

The World Customs Organization also points out that documents indicating origin without preferential treatment should not be required for regular imports.

This is necessary only when a particular trade policy, such as anti-dumping measures, import quotas, or Origin labeling requires it and should be implemented on an individual basis, not automatically.

We will also look for clarity on whether the standard certificate of origin can be regulated by the Tax Procedures Act instead of the East Africa Community Customs Management Act," Ogambi stated, "We value the transitional period but hope to discuss with the Commissioner of Customs KRA about its execution and effects.

KRA’sDepartment of Customs and Border Protection collectsed Sh879.3a billion in the fiscal year concluding June 2025, official statistics reveal, victoryan average daily gathering ofSh3.5 billion.

The performance was driven by non-otaxes that increased by 10.3 per cent to Sh541 billion and oil taxes that increased by 12.5 per cent to Sh338.276 billion.

Import duty grew by 18.3 per cent to Sh157.9 billion with the agricultural and steel industries at the forefront, experiencing increases of 67 per cent and 39 per cent, respectively.

Excise Tax also increased by 11.6 per cent to Sh125.300 billion, Railway Development Charge (RDL) collection increased by 15 per cent to Sh36.820 bmillion while Road Maintenance Levy increased by 50.9 per cent to Sh119.662 billion.

The rise in RML is due to higher applicable rates fromSh18 per litre to Sh£25 per liter. Additionally, oil quantities increased significantly by 13 per cent in July-June 2024-25 mostly from gasoline, diesel and other petroleum products (coal, electrical energy, lubricating greases,among others.)

The introduction of centralised clearance procedures led to a 62 per centreduction in the time required to clear cargo from 110 hours to 42 hours,” Nyawanda said yesterday.