Import duty in Kenya is levied on goods entering the country under the provisions of the East African Community (EAC) Customs Management Act. This duty applies to a wide variety of imported goods at rates that differ depending on the product category.
Overview of the EAC Common External Tariff (CET)
Effective from July 1, 2022, the East African Community Common External Tariff (EAC CET) 2022 version established a four-band tariff structure, featuring a minimum duty rate of 0%, intermediate rates of 10% and 25%, and a maximum rate of 35% for all products imported into the EAC region.
Key Amendments from EAC Gazette Notice No. 19 of 2025
The EAC Gazette Notice No. 19 of 2025 introduced several amendments to the EAC CET, which revised duty rates across numerous products to align with economic priorities. For example, the duty on certain items has been increased to 35%, including:
- Mobile phones, up from 25%.
- Road tractors for semi-trailers, raised from 10%.
- Ceramic tiles, adjusted from varying previous rates.
In contrast, the Gazette also specifies reductions in duty for select goods to enhance consumer affordability and support industrial inputs, such as:
- Lithium-ion batteries, lowered from 25% to 0%.
- Refined edible oils, reduced from 35% to 25% or US$500/MT.
Amendments to product descriptions, such as those under HS Code 9612, have been implemented to improve classification accuracy by distinguishing goods based on specific attributes like reel width.
Additionally, the Council approved an amendment to the duty rate for items under HS Code 9503.00.00, which encompasses tricycles, scooters, pedal cars, dolls’ carriages, dolls, other toys, reduced-size models, and puzzles of all kinds, increasing it from the previous 25% to 35%.
Duty Remissions and Exemptions
The Council has approved duty remissions on raw materials and inputs used in the assembly or manufacture of specific products, with some rates as low as 0%. These include:
- Smart telecommunication devices.
- Leather goods.
- Animal feeds.
Enterprises established under the Special Economic Zones Act and the Export Processing Zones Act are entitled to exemptions from import duty on goods they import. Approved manufacturers who import raw materials—not already subject to 0% duty—for producing goods within the EAC for export can apply for duty remission under the EAC scheme, provided they meet the required criteria, which may involve executing a bond as security for the remitted taxes. Similarly, assemblers of motor vehicles and motorcycles benefit from import duty remission under this framework.
Stays of Application and Policy Priorities
The Council has also granted various stays of application for EAC CET duty rates on specific items for a one-year period. For Kenya, this involves:
- Lowering CET rates on imports like lithium-ion batteries under tariff heading 8507.60.00 and refined oils under tariffs 1507.90.00, 1511.90.30, 1511.90.90, 1512.19.00, and 1515.29.00.
- Raising duties on products such as steel, textiles from Chapters 50 to 60 (excluding Chapter 57 and Heading 5904), tiles under tariff 7308.90.10, and mobile phones under headings 8517.13.00 and 8517.14.00 to safeguard local industries.
The Council has extended stays of application for Burundi, Rwanda, Uganda, and Kenya regarding EAC CET on originating goods imported from COMESA, effective from July 1, 2025, to June 30, 2026. Tanzania receives a comparable stay for goods originating from SADC during the same period.
Kenya’s import duty framework continues to evolve in response to regional economic needs, fostering growth while ensuring compliance. Businesses operating in this space should monitor these updates closely to optimize their import strategies. Reach out to FNJ & Associates for more guidance.