What happened

The Kenya Revenue Authority (KRA) has announced that, effective immediately, anyone importing goods into Kenya must obtain and retain the export documents issued by the country where the goods originated. The directive follows the public disclosure of Chinese customs records that highlighted a Ksh3 trillion discrepancy between reported imports and actual export documentation. KRA officials say the new requirement will close the gap, improve revenue collection, and align Kenya’s customs procedures with international best practice. Importers will now be asked to present the original certificate of origin, export licence, and any other official paperwork at the point of entry. Failure to produce the documents could result in detention of the cargo, fines, or additional duties.

Context and background

KRA’s decision comes after a series of investigative reports revealed that Chinese export data for goods shipped to Kenya did not match the paperwork submitted to Kenyan customs. The mismatch, estimated at roughly Ksh3 trillion, raised concerns about under‑declaration of value and possible revenue leakage. In response, KRA launched a task force in early 2024 to audit high‑volume import corridors, focusing on China, the United Arab Emirates, and India, which together account for more than half of Kenya’s import value.

The task force’s findings were presented to the Ministry of Finance in a closed‑door briefing, prompting the ministry to instruct KRA to tighten documentation requirements. Historically, Kenyan importers have relied on commercial invoices and Bill of Lading as primary proof of transaction, while export documents from the country of origin were treated as supplementary. The new rule elevates those foreign export documents to a primary compliance check, meaning customs officers will verify the authenticity of the certificate of origin, export licence, and any export‑control permits before releasing goods.

Stakeholders, including the Kenya Association of Manufacturers (KAM) and the Kenya Chamber of Commerce, have voiced concerns about the operational impact on small and medium enterprises (SMEs). Many SMEs lack direct relationships with overseas suppliers and often depend on freight forwarders to source the necessary paperwork. KRA, however, has promised a transition period of 30 days during which importers can seek guidance from regional customs offices and receive training on the new documentation standards. The authority also indicated that electronic submission of export documents via the iTax portal will be rolled out in the coming months to ease compliance.

Compared with what is normal

Under the previous regime, Kenyan customs accepted a commercial invoice and Bill of Lading as sufficient proof for most shipments, regardless of the origin country’s export documentation. The new rule therefore represents a shift from a largely import‑focused verification to a bilateral documentation check. Historically, gaps in export‑origin paperwork have been estimated at less than 5 percent of total imports, but the Chinese data breach suggested a far larger shortfall.

• Documentation scope: Earlier, only the certificate of origin was optional for certain tariff concessions; now it is mandatory for all imports.
• Enforcement timeline: Customs previously conducted spot checks on about 10 percent of shipments; the new policy aims to raise that to 30 percent within the first quarter.
• Revenue impact: KRA projects that stricter documentation could recover between 1 % and 2 % of annual import duties, translating to hundreds of millions of shillings.

Why it matters

For Kenyan SMEs that rely on imported raw materials, the rule adds a layer of administrative work that could affect cash flow and lead times. Without the proper export documents, shipments may be held at the port of Mombasa or Nairobi, incurring storage fees and demurrage that quickly erode profit margins. The change also has macro‑economic implications: by plugging the Ksh3 trillion gap, the government expects to boost fiscal space for infrastructure projects and social services. Moreover, the policy aligns Kenya with the World Customs Organization’s standards, potentially improving the country’s ranking in the Global Competitiveness Report.

Practical steps

• Contact your supplier immediately to request the original export licence, certificate of origin, and any export‑control permits before the goods are shipped.
• Work with a licensed freight forwarder who can verify the authenticity of foreign export documents and submit them electronically via the iTax portal.
• Schedule a brief compliance briefing with your nearest KRA office to understand the specific document formats accepted for your product category.
• Review your internal import SOPs and update them to include a checklist for foreign export documentation, assigning responsibility to a designated staff member.
• Monitor the 30‑day transition period closely; keep records of all communications with suppliers and forwarders as evidence of good‑faith effort.

Tax Planning & Compliance services at Beavoren Ventures can help import‑focused businesses navigate the new documentation requirements, assess potential duty savings, and ensure full compliance with KRA’s updated rules.

Need help with compliance? Email info@beavorenventures.co.ke or call +254 716 296 857.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.