The Ministry of Investments, Trade and Industry has issued a notice informing manufacturers, assemblers, investors, and the general public that the East African Community Assembly and Manufacturing of Products Regulations, 2023 will officially come into force on July 1, 2026.
In the notice issued on Tuesday, May 5, the State Department for Industry said the new regulations aim to establish a harmonized framework for manufacturing across partner states.
The directive follows resolutions made during the 47th Meeting of the Sectoral Council on Trade, Investment and Finance (SCTIFI) held between November 19 and 25, 2025 in Nairobi, where partner states were tasked with sensitizing stakeholders on the implementation of the regulations.
The regulations introduce several measures designed to strengthen regional manufacturing, including the registration of manufacturers and assemblers across EAC member states, encouragement of the use of raw materials and goods produced within the region, and the promotion of regional value addition and industrial development.
Stakeholders have been urged to familiarize themselves with these provisions and take the necessary steps to ensure compliance ahead of the commencement date.
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"All stakeholders are encouraged to familiarize themselves with the provisions of the Regulations and take necessary steps to ensure compliance ahead of the commencement date," the notice read in part.
The notice highlighted that Part III of the First Schedule of the regulations addresses local assembling and manufacturing of vehicles and motorcycles.
It outlines a list of locally manufactured Complete Knock Down (CKD) kits that will not qualify for customs duty incentives upon importation, signaling a push to encourage genuine local production.
The State Department noted that it is currently undertaking stakeholder engagement and public sensitization initiatives to ensure smooth implementation of the new framework.
"The State Department for Industry is currently undertaking stakeholder engagement and sensitization initiatives to facilitate smooth implementation," the notice added.
This comes days after the Kenya Revenue Authority (KRA) announced that export processes on the Integrated Customs Management System (iCMS) will be integrated with Value Added Tax (VAT) return filing on iTax.
In a public notice on Tuesday, April 28, the taxman said the changes will take effect from May 1, 2026.
KRA noted that export data captured and validated in iCMS will automatically be reflected in VAT returns filed through iTax.
According to the authority, the change will apply to exports destined for the Single Customs Territory, as well as other international markets, including Export Processing Zones (EPZs) and Special Economic Zones (SEZs).
"Kenya Revenue Authority notifies taxpayers and the public that, effective May 2026, the VAT return export data in iCMS will be integrated with the declaration of zero-rated supplies in the VAT return in iTax.
"This means that validated export values will be automatically prefilled in the VAT return upon issuance of the relevant export documents by Customs," read the notice in part.
KRA also said exporters and their clearing and forwarding agents will be required to ensure accurate data capture during the export process.
This includes providing the exporter’s Personal Identification Number (PIN) and valid TIMS or eTIMS zero-rated invoice numbers when lodging export documents in iCMS.
The taxman made it clear that only export values that are validated in iCMS and properly linked to the exporter’s PIN and invoice will be allowed in the VAT return.
"To support accurate prefilling, exporters and their clearing and forwarding agents must capture the exporter’s PIN and valid TIMS/eTIMS zero-rated invoice number when lodging export documents in iCMS," KRA stated.
Further, the authority said exports of taxable services will also be prefilled in iTax based on generated and transmitted TIMS or eTIMS invoices for the relevant tax period.
