Kenya Revenue Authority defends new export declaration rules amid port delays

Clearing and forwarding agents at the Port of Mombasa are protesting a new export declaration (ED) requirement implemented by the Kenya Revenue Authority (KRA). Agents report that the rule, which was enforced starting September 1, has caused thousands of consignments to pile up at the port and container freight stations, with approximately 5,000 units accumulating daily.

Stakeholders, including the Kenya International Freight and Warehousing Association (KIFWA), have expressed concerns regarding the retroactive application of the rule to cargo shipped before its launch and the resulting increase in demurrage costs. Agents also cited unclear valuation guidelines for motor vehicles as a significant point of contention.

The KRA issued a statement clarifying that the export declaration requirement is legally anchored under Section 23B of the Tax Procedures Act. The authority stated it is mandated to implement legislation enacted by Parliament while facilitating legitimate trade. Regarding motor vehicle valuations, the KRA noted the matter is currently sub judice and declined to comment on the merits of the methodology until a court determination is reached. The KRA expressed commitment to engaging with affected stakeholders to minimize business disruptions.