First Arrivals

These are personnel or dependants arriving into the country for a contract that is of a term not less than two years. They are exempted from paying taxes under East Africa Community Customs Management Act 2004, 5th Schedule Part A Paragraph 4. The paragraph provides for the conditions and limitations for such importation;

• One motor vehicle imported or purchased by them
• Household and personal effects of any kind
• The vehicle and personal effects must be shipped into the country within ninety days or further period not exceeding 360 days upon approval by the Commissioner, of the return of the individual resident
• The contract period is for a term not less than two years

Exemption privileges

The following are the exemption privileges available for diplomats and first arrivals as provided for under the provisions of the 5^th Schedule Part A paragraph 4 of the East African Community Customs Management Act, 2004 and the relevant sections of the accompanying legislations as will be described hereunder:

• Household and personal effects of any kind imported by entitled personnel or their dependants including one motor vehicle imported or purchased by them prior to clearance through customs within ninety days of their first arrival in a Partner State or such longer period not exceeding three hundred and sixty days from the date of his arrival, as may be approved by the Commissioner in a Partner State in specific cases where the entitled personnel have not been granted an exemption under returning resident or diplomatic status. This exemption shall apply to entitled personnel who may have arrived for a new contract notwithstanding their previous residential status in a Partner State while in execution of another assignment, provided further that each contract is for a term not less than two years.
• Goods for the official use of the United Nations or its specialised agencies or any Commonwealth High Commission or of any foreign embassy, consulate or diplomatic mission
• Goods for the use of a high official of the United Nations or its specialised agencies, or a member of the diplomatic staff of any Commonwealth or foreign country, where specific provision for such exemption is made by the minister responsible for foreign affairs.
• Goods for the United Nations or any of its specialised agencies for the support of a project in a Partner State.
• On first arrival in a Partner State or within three months of that date, the household and personal effects, including one motor vehicle, of employee of the United Nations, or of specialised agencies, of any Commonwealth High Commission, or of any foreign embassy, consulate or diplomatic mission, where the employee: (a) is not engaged in any other business or profession in a Partner State; and (b) has not been granted an exemption under diplomatic and returning resident basis.

Taxes Exempted and the legislation

Import Duty – 5^th Schedule Part A paragraph 4 of the East African Community Customs Management Act, 2004

Excise Duty – 2^nd Schedule Part A paragraph 2 of the Excise Duty Act 2015

VAT - 2^nd Schedule Part B paragraph 2 of the VAT Act 2013

IDF - 2^nd Schedule Part A paragraph (vi) of the Miscellaneous fees and levies Act 2016

RDL - 2^nd Schedule Part B paragraph (ii) of the Miscellaneous fees and levies Act 2016

Specific Conditions

• Any motor vehicle acquired free of duty pursuant to the provisions of this item shall on re-sale or upon other disposition, whether or not for any material consideration, be liable to duty notwithstanding that the period of two years allowed has elapsed.
• To qualify for the exemption, one should not have enjoyed an exemption privilege under any other diplomatic or as a returning resident status.

Documents required for application of the tax exemption

1. Evidence of contract agreement of not less than two years e.g. work permit for first arrivals
2. Passport endorsement for entry into Kenya
3. Diplomatic card for Diplomats
4. Pro 1B document from the Ministry of foreign affairs showing the goods being imported for Diplomats
5. Import documents  - Invoice, Bill of lading/airway bill, packing list

The Licensed Customs Clearing Agent will proceed to the process the exemption and further release of the goods under the Integrated Customs Management System (iCMS)

If you wish to import any commodity into Kenya, you will have to enlist the services of a clearing agent who will process the import documentation through Kenya Customs electronically on the Integrated Customs Management System (iCMS) and clear the goods on behalf of the importers.

An import declaration fee (IDF) of 2%of the Customs Value is payable. Customs will assess duty payable depending on the value of the goods and the duty rate applicable.

The East African Community Common External Tariff prescribing the duty rates of imported items is available at the KRA website.

Motor Vehicle Notices & Regulations:

If you wish to import a car into Kenya temporarily, here are some of the requirements.

For Kenyan Citizens:

Prior to gaining entry approval, the foreign operator from the East African Community (EAC) or Common Market for East and Southern Africa (COMESA) Countries must have a valid Temporary Importation of Road Vehicles Form (Form C32) which is issued at the Border Station.

To obtain a Form C32, an individual MUST:

1. Be a foreigner with foreign identification
2. Have a valid work permit or proof of residency, if Kenyan.
3. Have the foreign Motor Vehicle Registration Book in his/her name.
4. Have a valid Power of Attorney or authorization to operate the vehicle from the Motor Vehicle Owner, in case the operator is an agent of the owner.
5. For diplomats, one must prove that they have on going diplomatic status. In addition, must proof that they work in a diplomatic capacity e.g. Valid Diplomatic identification.

Individuals without these documents from the EAC and COMESA countries will not be issued with a Form C32 or be allowed to locally operate a foreign registered motor vehicle and any such vehicle operated without the above will be impounded.

For Non – Kenyans:

Prior to gaining entry approval, a foreign operator from Countries outside the EAC or COMESA Countries must have a valid International Circulation Permit from Country of Origin (Carnet de Passage en Douane) or Pass Sheet issued from their Country of Origin. This Carnet de Passages en Douane must be valid for use in Kenya

In addition to this, he/she MUST provide:

1. Foreign identification
2. Proof of residency in the foreign country, if Kenyan.
3. Have the foreign Motor Vehicle Registration Book in his/her name.
4. Have a valid Power of Attorney or authorization to operate the vehicle from the Motor Vehicle Owner, in case the operator is an agent of the owner.

Individuals without these documents will not be allowed entry in to or to locally operate a foreign registered motor vehicle and any such vehicle operated without the above will be impounded.

In addition to having a Form C32 or an International Circulation Permit from Country of Origin (Carnet de Passage en Douane), an operator of a Foreign motor vehicle must apply for a Foreign Motor Vehicle Permit.

To make an application for a foreign permit, an individual will require:

1. A valid Form C32 or an endorsed valid International Circulation Permit from Country of Origin (Carnet de Passage en Douane)
2. Certificate of COMESA Insurance
3. An online account on eCitizen which will be used to make the application.

The initial application for the Foreign Permit will be done upon entry into the country and will be issued based on the following categories:-

1. A paid up foreign permit, valid for a month, will be issued to vehicles on tour in Kenya with an International Circulation Permit from Country of Origin (Carnet de passage en douane). 
2. A free fourteen-day temporary permit will be issued at entry points to only vehicles with a Form C32 entering Kenya.

No vehicle will be allowed out of a Customs Border Station without the owner being in possession of either a Form C32 or Carnet de Passage and a Foreign Permit.

On expiry of fourteen days or granted period, the applicant, may seek an extension of their Form C32 and Foreign Permit from the Customs and Border Control Department, Enforcement Division Regional Offices. Extension of the Form C32 and Foreign Permits SHALL not be allowed unless the Customs Officer physically verifies the vehicle and is satisfied that a justified reason for the extension has been given.

All operators of foreign vehicles whose vehicles do not meet the above requirements MUST re-export their vehicles with immediate effect and any contraventions will lead to enforcement actions including impounding of the said vehicles.

Who is a returning resident?

A returning resident is a KENYAN CITIZEN changing residence from a place outside Kenya to a place within Kenya.

What are the taxes exempted and what legislation supports the exemption?

Returning residents are exempt from payment of Import Duty, Excise Duty, Value Added Tax (VAT), and Import Declaration Fee (IDF). The following are the legal provisions for the exemption of the said taxes:

• Import Duty – 5^th Schedule Part B Item 5 of the EACCMA (2004) Act
• Excise Duty – 2^nd Schedule Part A Item 6 of the Excise Duty Act
• Value Added Tax (VAT) – 1^st Schedule Part 1 Item 99 of the VAT Act
• Import Declaration Fee (IDF) – 2^nd Schedule Part A Item (vi) Miscellaneous Fees & Levies Act

Railway Development Levy (RDL) is chargeable under Section 8 of the Miscellaneous Fees and Levies Act, Cap 469C.

What goods are covered under the exemption regime for returning residents?

1. Wearing apparel.
2. Personal and household effects of any kind, which were in personal use in the former place of residence.
3. One motor vehicle (excluding buses and minibuses of seating capacity of more than 13 passengers and load-carrying vehicles of capacity exceeding two tonnes) which the passenger has personally owned and used outside Kenya for at least twelve months (excluding the period of the voyage in the case of shipment).

Any conditions to be met for qualification of exemption as a returning resident?

For qualification of exemption as a returning resident, the following conditions apply:

1. Demonstration of having resided outside Kenya — present a valid passport, visa, or work/student permit.
2. Demonstration that the person is permanently changing residence by returning to Kenya — passport entry endorsement.
3. In the case of a motor vehicle, evidence of ownership and usage of the motor vehicle for at least twelve months.

Are spouses and children tax exempt on returning resident basis?

Spouses and children of 18 years and above are exempt from taxes on the said goods provided that they meet all the conditions for returning residents. Such conditions include:

• That the goods were for personal and household use in the former place of residence.
• The conditions for a motor vehicle apply, i.e., one motor vehicle (excluding buses and minibuses of seating capacity of more than 13 passengers and load-carrying vehicles of capacity exceeding two tonnes) which the passenger has personally owned and used outside Kenya for at least twelve months (excluding the period of the voyage in the case of shipment).
• Evidence of residence outside Kenya (e.g., work permits, residence permits).
• Evidence of returning to Kenya (e.g., passport entry endorsement, completion of contract/work assignment).

For spouses who are not Kenyan citizens, they may be accorded tax exemption on first-arrival basis provided that they are coming to execute an assignment whose contract is not less than two years.

After what period is a returning resident entitled for another exemption (motor vehicles)?

A person is accorded an exemption on another motor vehicle once every four years and provided that all the duties on the earlier exempted motor vehicle have been paid. (Paragraph 5(3)(d) of the Fifth Schedule Part B of the East African Community Customs Management Act, 2004).

What documents will be required for processing the exemptions?

The following documents will be required when processing the exemptions:

• Importation documents – Invoice, Bill of Lading/Air Waybill, Packing List
• Passport – showing the entry and exit stamps
• Evidence of residence outside Kenya
• Interpol clearance for motor vehicles
• Evidence of ownership of the motor vehicle for at least 12 months

Any other conditions to be met?

• The mentioned goods for exemption must be shipped and imported into Kenya within ninety (90) days of the date of arrival of the passenger, or such further period not exceeding three hundred and sixty (360) days from such arrival as the Commissioner may allow.
• Where any person who has been granted an exemption under returning-resident basis changes residence to a place outside Kenya within ninety days from the date of arrival, they shall export their personal or household effects within thirty days, or such further period not exceeding sixty days from the date they change residence to a place outside a Partner State, as the Commissioner may allow; otherwise duty becomes payable from the date of importation.

You are allowed, among other items, one motor vehicle (excluding buses and minibuses) into the country duty free subject to the following conditions:

• Evidence of ownership and use of the vehicle for at least twelve months before return.
• The vehicle must not be more than eight years old from the date of manufacture.
• Evidence of travel (i.e., passport or appropriate travel documentation).
• The vehicle must be shipped into the country within ninety days or further period not exceeding 360 days upon approval by the Commissioner, of the return of the individual resident.
• The individual must not have enjoyed a similar exemption within the last four years.
• The household goods and personal effects should have been in personal use by the person in their previous residence before return to Kenya.

Guidelines for Returning Residents from Countries that Operate Left-Hand Drive (LHD) Vehicles

1. The person must be bona fide changing residence from a place outside Kenya to a place within Kenya.
2. The returning resident must provide proof of ownership and usage of the previously owned left-hand drive (LHD) vehicle for at least twelve months before changing residence.
3. The returning resident must provide proof of disposal (transfer of ownership) of the previously owned LHD vehicle before changing residence from the former country of residence.
4. The replacement right-hand drive (RHD) vehicle should have a value not exceeding that of the previously owned LHD vehicle.
5. The replacement RHD vehicle must not fall into the following categories and must meet these compliance conditions:
   • Bus or minibus of a seating capacity of more than 13 passengers.
   • Load-carrying vehicle of load-carrying capacity exceeding two tonnes.
   • Comply with KEBS requirements of Legal Notice No. 78 of 15^th July 2005 and KS1515:2000 (Kenya Standard Code of Practice for inspection of road vehicles), including:
     • Being less than 8 years old from the year of first registration;
     • Being right-hand drive; and
     • Undergoing roadworthiness inspection by KEBS’s appointed inspection agent in the country of export.
6. Evidence or proof of travel (passport or any authorized travel document).
7. The returning resident must provide residency/work permits.
8. The replacement motor vehicle must be imported into Kenya within ninety days of return of the person or such further period not exceeding three hundred and sixty days as may be approved by the Commissioner, Customs & Border Control.
9. The individual must not have enjoyed a similar exemption within the last four years.
10. The individual must have attained the age of eighteen years and above.
11. The country which one is returning from must be operating left-hand drive vehicles.
12. Where any person who has been granted exemption changes residence to a place outside Kenya within ninety days from the date of arrival, they shall export the motor vehicle within thirty days, or such further period not exceeding sixty days; otherwise tax shall become due and payable from the date of importation.

Required Documents

The following supporting documents should be attached including but not limited to:

• Passport – original
• Residence Visa/Work Permit – original
• PIN Certificate – obtained through the Kenya Revenue Authority
• Bill of Lading/Air Waybill – original
• Commercial invoice – for left-hand drive motor vehicle replacement
• Authority letter – nominating a licensed customs clearing agent to act on their behalf
• Copy of logbook for the previously owned left-hand drive motor vehicle
• Sale agreement of the left-hand drive motor vehicle

Application for tax exemption

The returning resident is required to engage the services of a Licensed Customs Clearing Agent for the processing of exemption and further release of the goods under the Integrated Customs Management System (iCMS).

The Kenya Revenue Authority (KRA) was created by an Act of Parliament (Chapter 469 of the laws of Kenya) in July 1995 to collect, administer and account for revenue on behalf of the Government of Kenya (GoK).

PIN Registration

A PIN is a Personal Identification Number used while doing business with Kenya Revenue Authority, other Government agencies and service providers. 

Do I need a PIN?

You are required to have a PIN if you expect to earn any income from Kenya. This applies to both Residents and Non- residents.

Some transactions will also require you to have a PIN. These transactions include but are not limited to;

1. Registration of title, stamping of instruments by the Commissioner of Lands, and payment of Land Rent.
2. Approval of plans, payment of water deposits, application for a business permit, payment of Land Rent by Local Authorities.
3. Registration of Motor Vehicles, and licensing under the Traffic Act (Cap 403) by the Registrar of motor Vehicles.
4. Registration of Business Names and Companies by the Registrars of Business names and companies.
5. Trade licensing by the Ministry of Commerce.
6. Application for Value Added Tax registration.
7. Underwriting policies by Insurance Companies.
8. To facilitate importation of goods, Customs clearing and forwarding at the offices of Commissioner of Customs and Excise.
9. Payment of Deposits for power connections at Kenya Power and Lightning Co. Ltd.
10. To facilitate all contracts for supply of goods and services to all Government Ministries and Public bodies.

How do I register for a PIN?

Pin Registration is an online process done via iTax system.

*PIN registration requirements available on the KRA website

Tax Obligations

Every person with a Personal Identification Number is required to file and pay their taxes via iTax on or before the due date.

Kenyans in the diaspora are encouraged to visit any home missions abroad to receive filing support or any other assistance related to their PIN.

Some of the tax obligations include;

Other tax obligations include;

• Withholding Tax
• Capital Gains Tax
• Excise Duty
• Turnover Tax
• Advance Tax