New documentation rules signal tougher imports compliance

Kenya has introduced a significant new compliance requirement for imported goods that takes effect in September 2026. This measure, introduced through the Finance Act, 2026, establishes a new Section 23B of the Tax Procedures Act (TPA) requiring importers to obtain and retain export documentation issued by the country’s competent authority from which the goods originate.

Under the new provisions, importers must keep an export declaration, export entry, export certificate or any equivalent document. The export declaration must contain key details such as the names and addresses of both exporter and importer, a description of the goods including quality, value, tariff classification, countries of export and destination, and the reference number issued by the exporting country’s customs authority. The documents must be retained for five years and produced upon request by the Kenya Revenue Authority (KRA).

The amendment grants KRA broader enforcement powers. Importers who fail to provide the required documentation risk having the KRA reject claims relating to the importation, value, origin, cost or ownership of the goods. In such cases, the Commissioner may assess tax liabilities based on available information and may impose any prescribed administrative penalties.

However, Section 23B of the TPA permits the Commissioner to waive the requirement in cases where the customs authority in the exporting country does not issue export declarations. In addition, the change requires the Cabinet Secretary, National Treasury to issue regulations to implement the new provisions.

Separately, the KRA has also introduced the Advance Cargo Declaration (ACD) Platform, a digital pre-arrival system for containerised cargo destined for Kenyan ports. Exporters and importers must obtain an ACD reference code from this portal to be used in the cargo clearing process.

To obtain the code, importers must upload the relevant export documents from the country of origin (namely the bill of lading, commercial invoice, freight invoice and export declaration) onto the ACD platform prior to the goods being loaded onto the vessel destined to Kenya. The ACD reference code obtained, must be included on the bill of lading before the cargo is dispatched to Kenya.

The new framework is intended to strengthen tax compliance and curb revenue leakages by allowing   KRA to compare import declarations with documentation issued by foreign authorities. It is expected to reduce common customs related risks including misdeclaration of goods, under‑valuation and tariff misclassification.

Whilst the measures could improve revenue collection and customs transparency, the change increases the administrative burden for importers and is a potential source of commercial risk. Failure to produce or retain the required export documentation could result in disallowed costs for corporate income tax claims relating to imported goods as well as additional tax assessments based on alternative sources of information used to calculate the taxable value of the goods. As a result, businesses are encouraged to review their supply‑chain documentation processes and engage with overseas suppliers to ensure complaint export records are available before shipments are dispatched.

The waiver for jurisdictions that do not issue export declarations is a practical safeguard. However, importers should not assume that relief will apply automatically where the same is not obtained in the country of origin. Forthcoming regulations from the Cabinet Secretary will be important in clarifying operational matters, including acceptable document formats, cross-border verification procedures and any transitional arrangement.

The Finance Act, 2026 amendments on export documentation under the TPA also raises a potential drafting issue as it appears to remove the definition of “certificate of origin” from Section 3 of the TPA while leaving Section 44A, which requires goods imported into Kenya to be accompanied by a valid certificate of origin, unchanged. This may create overlapping or inconsistent obligations and may require further legislative clarification to avoid imposing multiple documentary requirements on importers.

In light of this, importers should now review and update their import‑control procedures to ensure export declarations are requested and retained for at least five years. This will require them to engage with overseas suppliers to confirm that they will issue compliant export documentation and monitor the National Treasury’s regulations for implementation details and any transitional rules.

The measures signal a tougher compliance approach by KRA and reinforce the importance of robust documentation in cross-border trade. Importers and their advisers should act promptly to minimize the risk of shipment delays, penalties and unexpected tax liabilities.

Lillian King’oo is a Tax & Legal Senior Manager at Deloitte & Touche East Africa. The views presented are her own and not necessarily those of Deloitte. She can be reached at lkingoo@deloitte.co.ke.

Article published on Business Daily.