Higher Import Duty: Kenyans to Pay More for Vehicle Imports
As a result of an increase in vehicle import duty by the Kenyan government, Kenyans will pay more to import vehicles.
According to an East African Community (EAC) Gazette dated 30 June 2023, the Kenyan government increased vehicle import duties from 25% to 35%.
Instructively, the gazette notice stated that all other community members, including the Democratic Republic of the Congo, Tanzania, Burundi, Rwanda, and South Sudan, had agreed to maintain the EAC Common External Tariff (CET) of 25%.
According to the notice, the countries used a CET rate for imported goods, which meant that there was no need for countries to negotiate rates on an individual basis.
“All motor vehicles classified under tariff headings 8702, 8703, and 8704 are currently subject to a 25% Common External Tariff (CET) rate.
“Kenya is to suspend the application of the East African Community CET rate of 25% and apply the duty rate of 35%,” stated a portion of the notice.
Simultaneously, the government raised the import tax on mobile phones. According to the notice, Kenya intended to suspend the application of the East African Community Rate of zero percent for one year and apply a duty rate of 25 percent.
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Clothing was another item that experienced an increase in import duty. The notice stated, “Kenya will suspend the application of the EAC CET rate and apply a 35% duty rate.”
Tiles also made the list, with Kenya, Uganda, and Burundi suspending for one year the application of the EAC CET rate of 25% and applying a duty rate of 35%.
Additionally, the EAC gazette reported that the government would increase television import duties by 10%.
The notice added, “Kenya will suspend the application of the East African Community Common External Tariff (CET) rate of 25% and apply a duty rate of 35% for one year.”
At the same time, Kenya and Uganda decided to increase the import duty rates for iron or steel containers used to transport compressed or liquefied gas.
The notice stated, “Uganda and Kenya will suspend the application of the EAC CET rate of 0% on Liquified Petroleum Gas Cylinders and apply a duty rate of 35% for one year.”
The move occurred at a time when the Kenya Bureau of Standards (KEBS) was on high alert for the importation of stolen luxury vehicles from the United Kingdom (UK).
Higher Import Duty: Kenyans to Pay More for Vehicle Imports
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