KRA defends new cargo clearance rule

Kenya Revenue Authority (KRA) has defended newly imposed cargo clearance requirements, saying it’s just implementing what is already in the law.

The cargo clearance dispute intensified following the September 1, 2026 implementation of Section 23B of the Tax Procedures Act.

The Act mandates importers to obtain and retain valid export declarations or certificates from the country of origin.

The Advance Cargo Declaration system, which was launched for containerised cargo in August, requires information including the commercial invoice, bill of lading, freight invoice and export declaration before the cargo is shipped to Kenya.

The requirement has been opposed by the freight forwarders' lobby, Kenya International Freight and Warehousing Association (KIFWA), which says it will lead to demurrage charges on empty containers.

The lobby said the congestion and limited depot space are causing delays outside the control of clearing agents and freight forwarders.

“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,” said Commissioner, Customs and Border Control Department Dr Lilian Nyawanda in a statement to newsrooms.

“KRA wishes to clarify that the requirements for an export declaration in the clearance of imported goods are anchored by law under Section 23B of the Tax Procedures Act. As a statutory institution, KRA is mandated to implement and administer legislation enacted by Parliament, while at the same time facilitating legitimate trade and business operations.”

The commissioner said KRA is committed to working closely with affected stakeholders to ensure that the implementation of statutory requirements promotes compliance while minimising unnecessary disruption to legitimate business activities.

With regard to motor vehicle valuation, KRA chose not to comment on the issue before it’s in court. This is after importers challenged valuations, saying its excessive or unsupported.

Currently, KRA uses the Current Retail Selling Price (CRSP) system to arrive at the customs value of used vehicles after applying depreciation, which it says provides predictability and has historically been developed with industry participation.

“The Authority therefore refrains from commenting on the specific merits of the valuation methodology in accordance with the principle of subjudice, pending the direction and determination of the court,” said Nyawanda.

“KRA remains committed to continuous and constructive engagement with freight forwarders, clearing agents, motor vehicle dealers, and other relevant stakeholders. Through ongoing consultation and dialogue, KRA will continue to explore practical and lawful solutions to operational challenges affecting cargo clearance and trade.”