Explanatory Notes on Customs clearance processes in Kenya

In Kenya there are two modes of clearance:

1) Informal
2) Formal.

Formal clearance applies to shipments with a value of >than USD 1000 and weight > 70 kg.
Informal clearance applies to shipments with a value of < USD 1000 and weight < 70 kg.

For Formal clearance the following documents are required:

 Typed itemized commercial invoice, with full details of the supplier/sender and the receiver.
 Import license - otherwise known as an Import Declaration Form or IDF. This is issued locally
by the Kenya Revenue Authority (Customs) from their Head Office in Nairobi.
 Original AWB.
 For first time importers, a copy the importer’s Personal Identification Number (PIN)
certificate whether on individual (private) basis or as a company. All companies in Kenya
have their own PINs. It is mandatory to have the PIN details uploaded into the KRA clearance
system to complete the clearance transaction.

For Informal clearance the following documents are required:

 Typed itemized commercial invoice (unless it is a personal item in which case a declaration
and packing list are required)
 Original AWB.

Basis of taxation:

Tariff or HS code classification is used as the taxation guideline, which is used to ascertain the rate of
import duty.

The rate of duty varies between 10% and 25% and then Value Added Tax (VAT) is added @ 16%. In
addition the following charges are added:

- Government of Kenya (GOK) fee: this is charged @ 2.25% of the customs value (or a
minimum of KSH 5,000, whichever is higher - this is roughly EUR 50 or USD 60)
- Kenya Airport Authority (KAA) fee @ a flat rate of KSH 250 (approx EUR 2.50 or USD 3)
- Kenya Bureau of Standards (KEBS) fee: Shipments with a value of up to KES 500,000 (approx
EUR 5,000) imported under “courier/express” mode do not require a Certificate of
Conformity (COC), but KEBS charge an inspection fee (whether they actually inspect it or
not) of KES 800 if the value is KES 50,000 or below, KES 1,200 for values between KES 50,001
and 100,000, and KES 1,500 or 0.5% of the CIF value (whichever is higher) for values
between KES 100,000 and 500,000. Shipments valued >KES 500,000 and containing items on
the PVOC list require a COC from origin. If they arrive without the COC the importer will have
to pay a penalty of 15% of the value of the shipment.
 - Railway Development Levy @ 1.5% of the customs value. This is applicable to all imports and
in theory goes towards developing new railways in the country.

The tariff classification is based on the make and functionality of the item.

The current document of reference concerning the rate of taxation and tariff classification is the East
African Community Common External Tariff 2012 Version.

The value for Customs is calculated as follows: cost of the goods, plus the cost of insurance (if
insurance is not stated on the invoice, it will be added at a rate of 1.5% of the Free On Board (FOB)
value.

In summary, the calculation will look like this:

- Import Duty (Customs value @ the applicable rate of duty)

- VAT value @ 16% (i.e. 16% of the Customs value + duty payable)
- GOK fee (Customs value @ 2.25 % (minimum KSK 5,000)
- KEBS fee (as explained above)
- KAA fee of KSH 250
- Railway Development Levy of 1.5% of the Customs value

While there is no official De Minimis value (i.e. a value under which the authorities deem it is not
worth the hassle of officially clearing the goods since the value is so low) in Kenya, in practice
shipments with a value of less than USD 10 and with a weight of less than 10 kg, Customs do usually
waive all charges. However this does not apply to: spares parts, electronic items, medication, DVDs,
food & food items, plants & plant items or automotive gadgets.

All imports into the country are subject to taxation unless the importer enjoys a tax exemption
under Diplomatic Mission exemption or other specific government exemptions. This must be
obtained from the Treasury Department prior to importation.

Used personal effects are also exempted from taxes but are cleared against the receiver’s passport,
which must indicate that the person has not stayed into the country for more than 90 days. If any of
the items are verified and found to be new, then taxes will apply.

Samples unless mutilated are taxable based on the invoice value.

Personal medication requires a doctor’s prescription, while commercial medication requires an

import permit as additional clearance documents are required. Duty will be based on the value, the
quantity, plus the minimum GOK fee will apply for such medication.

Notes:

- Used Laptops are subjected to an anti-dumping excise duty at 25 %.

- Gift items are taxable
 - Charitable shipments are subject to close scrutiny and often incur high rates of duty,
including a special rate of duty for used clothing of 35%. This is to protect the local garment
industry.
- All shipments are liable to 100% verification by Customs. Kenya Customs have been
mandated to uplift any value should they find the declared value to be insufficient. Value
uplifts are based on Kenya Revenue Authority’s own guidelines, which are not open to
public scrutiny.
- Duties and taxes are not included in the freight costs.
- Our point of reference is the AWB number, otherwise known as the tracking number.
- A trade discount, if declared on the invoice, will be taxed. The maximum discount permitted
in Kenya is 5%.

Payment Options:

DHL Express Kenya offers three modes of payment for fees and taxes: Pre-payment & Post-payment.

 Pre-payment is where, upon receipt of the invoice, the receiver must make payment
through mobile money, electronic funds transfer or pay at any DHL Express owned service
point (7 in Nairobi, one each in Mombasa, Nakuru and Kisumu).
 Post-payment is extended to duty account holders only. For these, DHL Express makes the
payment on behalf of the receiver up to an agreed limit and the receiver reimburses DHL
Express within 7 working days.
 A shipper can send a shipment on Deliver Duty Paid (DDP) terms, where taxes are billed back
to shipper and the importer will not be required to pay anything.