The Kenya Revenue Authority (KRA) has clarified concerns raised by clearing agents, motor vehicle dealers, freight forwarders and other stakeholders over cargo clearance procedures.
KRA maintains that the requirement for an export declaration when clearing imported goods is provided for under Section 23B of the Tax Procedures Act.
The Authority has, however, declined to comment on the merits of its motor vehicle valuation methodology, noting that the matter is currently before the Court.
In a statement issued on September 7, KRA acknowledged concerns raised by the Kenya International Freight and Warehousing Association (KIFWA), clearing agents, motor vehicle dealers and other stakeholders over the implementation of cargo clearance requirements.
“KRA wishes to clarify that the requirements for an export declaration in the clearance of imported goods is anchored by law under Section 23B of the Tax Procedures Act,” the statement read in part.
The Authority further said its role includes enforcing and administering laws passed by Parliament while ensuring that legitimate businesses and trade activities can operate efficiently.
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Growing Concerns Over Cargo Clearance
The new requirement comes amid wider concerns over customs valuation and cargo-clearance procedures.
In August, KRA raised the minimum customs benchmark for general containerised consolidated cargo from KSh2.5 million to KSh3.2 million, citing concerns over undervaluation and under-declaration.
The increase triggered protests by traders before President William Ruto directed KRA on September 2 to revert the benchmark to KSh2.5 million and develop a list of high-value goods that would not qualify for consolidation.
Dispute Over Motor Vehicle Valuation
Motor-vehicle valuation has also been the subject of prolonged legal and stakeholder disputes.
In a 2019 case brought by the Car Importers Association of Kenya, the High Court found that KRA’s then-current retail selling price (CRSP) values for used imported vehicles had been developed without the required public participation and declared them unconstitutional.
The court, however, allowed the existing values to continue temporarily to avoid disrupting transactions while a lawful process was undertaken.
The valuation dispute has continued in subsequent years. KRA conducted further stakeholder engagements on the valuation of used motor vehicles, including consultations on Free on Board (FOB) values and the development of a new valuation database.
In 2025, KRA announced a revised CRSP list after consultations involving motor-vehicle importers and industry associations, including CIAK and KIFWA.
The Authority said the revised list was intended to reflect changes in vehicle models, exchange rates, taxes and other market conditions.
The latest concerns over motor-vehicle valuation remain subject to legal proceedings, prompting KRA to refrain from commenting on the merits of the matter while it is before the Court.
