The Kenya Revenue Authority (KRA) has introduced a stringent requirement for all imports into Kenya, mandating that consignments be accompanied by a Certificate of Origin (COO) effective July 1, 2025, as announced in a public notice on July 9.
The directive, aligning with Section 44A of the Tax Procedures Act, CAP 469B, amended by the Finance Act 2025, marks a significant shift from previous practices where COOs were only required for goods under preferential trade agreements.
KRA has set a grace period until September 30, 2025, warning that non-compliance thereafter will result in seizure or forfeiture of goods, a move that has sparked concerns among importers and clearing agents amidst Kenya’s ongoing economic and political challenges.
The COO, issued by a competent authority in the exporting country, must include the exporter’s and importer’s names and addresses, port of origin, an accurate description of goods, quantity, country of origin, and destination.
KRA emphasised that only government agencies or officially designated bodies in the exporting country can issue valid COOs.
“This marks a radical shift from prior practice, where COOs were required only for goods under preferential trade arrangements to determine origin and confer tariff benefits,” KRA stated.
Importers have until September 30 to secure the necessary documents, with KRA urging early engagement with suppliers to avoid disruptions at ports like Mombasa and Jomo Kenyatta International Airport (JKIA).
The announcement has drawn mixed reactions. While some praise the move for enhancing trade transparency, others, including the Kenya International Freight and Warehousing Association (KIFWA), warn of potential job losses and increased costs.
The policy follows KRA’s 2024 revenue collection of Sh791 billion through agent collaboration, but critics argue it could strain small businesses, especially with import taxes ranging from 0% to 35% under the East African Community Common External Tariff.
KRA’s directive, accessible via www.kra.go.ke, requires importers to work with licensed clearing agents using the Integrated Customs Management System (iCMS).
Non-compliance penalties underscore KRA’s commitment to enforcing the Finance Act 2025, despite fears of port congestion reminiscent of 2018’s Sh3 billion losses.
As Kenya navigates economic and social challenges, the COO requirement adds complexity to trade, with stakeholders urging dialogue to mitigate impacts on businesses and consumers.
