Brace for higher cost of imported goods as new EAC tariffs kick in

Imported vehicles at the Mombasa port. [File, Standard]

Despite the shelving of the Finance Bill, 2024, Kenya will still be confronted with a rise in the cost of various goods after import duties under the East African Community (EAC) Common External Tariff (CET) came into force.

While a proposal to impose an excise duty of 25 per cent on crude palm oil and finished cooking oil failed with the fall of the Finance Bill, the government has been allowed to charge an import duty of 10 per cent on crude palm oil as opposed to the ECA CET rate of zero per cent.

The government will also apply a duty rate of 25 per cent or $500 (Sh64,500) per metric tonne, whichever is higher, for one year on refined soya bean oil, RDB palm olein, other palm oils, refined sunflower oil and refined corn oil compared to the EAC CET rate of 25 per cent.