Kenya Finance Bill Revises Customs Fees, Eliminates Certain Import Exemptions
Kenya’s new finance bill includes several provisions that may be a disincentive to imports, including a new customs fee, additional duties and the removal of certain exemptions, the Hong Kong Trade Development Council said in a July 15 report. The…
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bill, which took effect June 30, changed the import declaration fee for goods imported under the East African Community Duty Remission Scheme from a flat fee of $93 (U.S. dollar equivalent) to1.5% of the import's customs value. The new rate also “is chargeable regardless of the goods’ final destination,” unlike the flat-rate fee that applied to “imported goods that were subsequently destined for the Kenyan market.” The bill also removed fee exemptions for imports of certain aircrafts and other goods used for “promoting investments” or for “framework arrangements with the government.” Another measure will impose an additional 2.5% duty on certain goods imported for domestic use by companies in an “Export Processing Zone.” Kenya’s Parliamentary Budget Office has warned the bill may affect the competitiveness of the Port of Mombasa, which is used by other countries in the region, the report said. It is the largest port in East Africa.