1 TARIFF MEASURES
Structure of the tariff schedule
Kenya applies an eight-digit tariff nomenclature. The single column
tariff is based on the Harmonized Commodity Description and Coding System
(HS 96).
Tariff publications
Current information on customs related matters is available from Kenya
Customs and Excise Department, P.O. Box 72736, Nairobi.
| 12 |
MFN treatment is offered to all countries including those that are
not WTO members. The import tariff contains ad valorem rates, mixed
duties, and specific duties with ad valorem rates being the most common.
In conformity with the Finance Bill of 15 June 2000, MFN duty rates have
ten levels (0%, 2.5%, 5%, 10%, 15%, 20%, 25%, 30%, 35%, and 45%) based
on the c.i.f. value. Mixed duties apply to products such as wheat,
maize, rice, sugar, milk, textiles and clothing, footwear, tobacco, spirits,
and other manufactured products. Specific duties are set on petroleum
products. |
| 16 |
Under export incentive schemes, remissions, rebates and refunds of
import duties are available on raw materials, capital equipment, machinery,
and other components used in the manufacture and packaging of goods destined
for export. Imports on which duties are also remitted include sowing
seeds, unassembled trailers and semi-trailers, motor vehicles and specified
spare parts for use in the Safari Rally, stainless steel tubes, bars and
fittings, raw materials for use in the manufacture of insecticides, fungicides
and similar products, including component parts used in the manufacture
of agricultural and horticultural equipment, as well as specified raw materials
for sole use by certain industries manufacturing medicaments. In
accordance with the provisions of the Petroleum (Exploration and Production)
Act, duties payable on imports of products and materials intended for oil
activities are remitted. However, all importers enjoying exemption
of duties pay at least the minimum of 2.75% (the import declaration fee),
regardless of the destination or final use of the imports. |
| 19.1 |
The Common Market for East and South Africa (COMESA) Treaty superseded
the Preferential Trade Area for Eastern and Southern African States (PTA)
in 1995. In its objective of a Free Trade Area by 31 October 2000,
COMESA has set out a progressive reduction programme for the member states
to implement. COMESA has also agreed to implement a Common External
Tariff by the year 2004. The CET will be 0%, 5%, 15% and 30% on capital
goods, raw materials, intermediate goods, and final goods, respectively.
The Monetary Harmonized Programme is to be implemented in four phases,
from 1991 to 2025, with the final phase culminating in full monetary union.
The Agreement establishing the Permanent Tripartite Commission for East
African Cooperation (EAC) was signed by Kenya, Tanzania, and Uganda on
30 November 1993. Its objectives include harmonizing tariffs and
customs regimes. A preferential tariff is intended to prevail within
the EAC and a common external tariff (CET) is envisaged for 2004.
The Organization of African Unity (OAU) was founded in 1963 by 30 African
nations and another 21 signatories have since joined. Morocco, however,
left in 1985. As an OAU member, Kenya signed the African Economic
Community Treaty (AEC) in 1991. This treaty outlined six stages,
including the removal of tariff and non-tariff barriers to trade and the
establishment of a continent-wide customs union by 2004. A commitment
was also made to the establishment of an African Common Market (ACM), with
a central bank and single currency over a period of 34 years. |
2 PARA TARIFF MEASURES
Additional charges
| 22.7 |
An import declaration fee of 2.75% is collected on the c.i.f. value
of all imports to Kenya irrespective of their source, final use, and value.
An additional fee of 1% is collected on the c.i.f. value of agricultural
imports to support the Kenya Plant Health Inspectorate (KEPHIS). |
| 22.9 |
A system of ad valorem or specific rates, called "suspended" duties,
apply in addition to customs tariffs to a list of selected products including
motor vehicles, tyres, dry cells, paper and paperboard, tobacco products,
alcoholic beverages, certain fruit, vegetable oils, cosmetics, resin, yarns,
footwear, and selected iron and steel products. A parliamentary act
provides for the ceiling rate of suspended duties. The current rates
range up to 70%, however, the actual amount imposed is nil for most items.
Petroleum products are subject to specific rates. |
Internal taxes and charges levied on imports
| 23.1 |
A value-added tax is levied at a standard rate of 18% on the customs
value plus border charges of imports. Unprocessed agricultural products
(including fishery, forestry, and livestock) and processed foodstuffs are
exempt from VAT. Pharmaceuticals, medical equipment, fertilizers,
agricultural machinery, and educational textbooks are zero-rated for duty
refund purposes. The VAT can also be waived by the Minister of Finance
and Planning under specific programme conditions detailed in the Value
Added Tax Act. |
| 23.2 |
Excise duties ranging from 10% on mineral waters, essential oils, and
cosmetic products to 130% on tobacco products are charged on the import
value (including customs duties) of imported items. The excise duties
are specific on mineral fuels and oils, and mixed on certain spirits. |
3 PRICE CONTROL
MEASURES
Anti-dumping
measures
| 34.1 |
Sections 125 and 126 of the Customs and Excise Act provide the legal
basis for anti-dumping and countervailing measures in Kenya. Under
Section 125, a dumping duty may by imposed on dumped or subsidized goods
if their importation causes or threatens to cause material injury to an
established industry in Kenya. |
4 MONEY AND
FINANCE MEASURES
Finance
Measures
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Under the Central Bank Act, authorized banks require a copy of the
import declaration form, a final invoice, and a copy of the customs entry
for release of foreign exchange for imports. |
6 QUANTITY
CONTROL MEASURES
Non-automatic licensing
Licensing under the authority of Ministry of Commerce
and Industry, Cooperative House, Haile Selassie Avenue, P.O. Box 30430,
Nairobi.
Under the Imports Order (Imports, Exports and
Essential Supplies Act) of 14 May 1993, Kenya abolished its import licensing
regime for all but a negative list of products involving health, environmental,
and security concerns. Products falling under Part A of the import
schedule are prohibited; Part B items are restricted, subject to
approval from relevant authorities. All items in Part B require an
import declaration form irrespective of their f.o.b. value.
| 61.43 |
Kenya does engage in counter trade arrangements on an ad hoc basis.
The Import Management Committee must approve counter trade transactions. |
| 61.74 |
Nuclear reactors and parts thereof require an import authorization
from the Ministry of Energy.
Distress and live-saving pyrotechnic articles require an approval from
both the Office of the President, and the Ministry of Environment and National
Resources. |
| 61.75 |
Endangered or rare species may be imported only after approval by the
relevant authorities in the exporting country and in accordance with the
Convention on International Trade in Endangered Species of Wild Fauna and
Flora (CITES). |
| 61.77 |
Propellant powder, explosives, fireworks, safety and detonation fuses
require an import authorization from the Mines and Geology Department.
The importation of firearms and parts thereof, cartridges, munitions
of war, swords, cutlasses and similar arms must be approved by the Kenya
Police. |
| 61.78 |
Armoured fighting vehicles, warships, and military weapons may only
be imported subject to an authorization from the Office of the President. |
Prohibition
| 63.72 |
Effective 15 March 2001, the Department of Agricultural and Rural Development
(Department of Veterinary Services) temporarily prohibited the importation
of chicks from Mauritius to prevent the introduction of Avian Encephalomyelitis
(Epidemic Tremos) in Kenya. |
| 63.74 |
Kenya operates a ban on the importation of toxic chemical waste. |
| 63.75 |
Products of animal origin such as bones and horn-cores, ivory hippopotamus
teeth, rhinoceros horns, tortoise shell, coral, natural sponges and articles
of these materials are subject to import prohibition for reason of wildlife
protection. |
7 MONOPOLISTIC MEASURES
Compulsive national services
| 72.1 |
Insurance for imports must be taken with companies licensed in Kenya.
However, with the newly introduced privatisation legislation, this requirement
is soon to be removed. |
TECHNICAL MEASURES
Standards and technical regulations are the responsibility
of Kenya Bureau of Standards (KBS), P.O. Box 54974, Nairobi.
Under the Imports Order (Imports, Exports and Essential Supplies Act)
of 14 May 1993, products falling under Part C of the negative list are
subject to technical, phytosanitary, health and environmental standards.
An import declaration form should be completed, even if the f.o.b. value
of the items is lower than US$5,000.
| 81.1 |
The setting of Kenya standards is following international norms.
The KBS is reviewing its standards that are 10 or more years old.
Exemption from compliance with compulsory standards may be granted by the
Ministry of Tourism, Trade and Industry.
The 1963 Fertilizers and Animal Foodstuffs Act (revised in 1977) provides
for technical standards to be met by fertilizers.
The development of the Permanent Tripartite Commission for East-African
Cooperation (EAC) is geared towards harmonizing the regulatory provision
of quality of products in the East African Region. The standards
have been adopted from other countries' standards. This move will
eliminate non-tariff barriers to trade within the region.
The 1972 Meat Control Act (revised in 1977) provides standards for storage
and transportation of meat and animals.
The Fisheries Department is the relevant authority to approve the importation
of live fish including ornamental fish, crustaceans, and molluscs.
Live plants, bulbs, roots and the like, flowers, ornamental foliage,
potatoes and potato seed, maize seed, insecticides, weed killers and other
herbicides are permitted for importation by the Ministry of Agriculture,
Livestock Development and Marketing.
The Ministry of Health is mandated to authorize the importation of disinfectants,
rodenticides and similar products.
Imports of live animals require health clearance certificates issued
at the port of entrance stating that the animal is healthy.
Imported fruits require a certificate from the exporting country stating
that the product is free from insect pests.
The process of seed certification is mandatory.
Spirits for human consumption except brandy must provide proof of being
matured by storage in wood for a period of not less than three years.
The importation of agricultural chemicals is subject to prior authorization
by the Pest Control Products Board (PCPB). All agricultural chemicals
must be registered with the PCPB. All organizations involved in the
agricultural chemicals sector have to sign a "Code of Conduct" based on
the U.N.'s Food and Agriculture Organization Code. This document
requires rigid control in manufacture, packaging, labelling, and distribution.
Under the Pharmacy and Poisons (Registration of Drugs) Rules 1981, drugs
require a certificate of registration.
All foodstuffs must have over 50 per cent of their shelf life remaining
upon their arrival. |
| 81.3 |
All foodstuffs must be labelled in English or Kiswahili. The
labels of all consumables must indicate the date of expiry.
Special labelling is required for condensed milk, paint, varnishes,
and butter ghee. |
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Labelling and packaging requirements apply to meat products. |
| 81.4 |
Plant residues may be used as packaging material if they are accompanied
by a certificate stating that all seed, pathogens, and insects have been
killed. |
| 81.5 |
Under the 1937 Plant Protection Act (revised in 1962 and 1979), the
Kenya Plant Health Inspectorate Service (KEPHIS) coordinates all matters
relating to plant quarantine regulations. The KEPHIS issues phytosanitary
certificates after having verified that the shipment meets the entry requirements.
All animals for export to Kenya must be held for 21 days in approved
quarantine facilities that must be regularly inspected by the veterinary
authorities of the exporting country, subject to inspection by the veterinary
officer from Kenya, where necessary.
Guidelines for imports, tests, and releases of genetically modified
organisms have been stipulated by the Kenya National Biosafety Regulations
Committee. |
| 81.9 |
Imports of plant materials and animal products (including live animals)
must be effected through one of the 17 designated points of entry. |
Pre-shipment inspection
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All imports with f.o.b. value of more than US$5,000 must undergo a
pre-shipment inspection for quality, quantity, and price conducted by Interteck
Testing Services (ITS), effective 1 February 2001. |
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