KRA Responds to Clearing Agents’ Concerns Over Cargo Clearance

Kenya Revenue Authority (KRA) has responded to concerns raised by the Kenya International Freight and Warehousing Association (KIFWA), clearing agents, motor vehicle dealers and other stakeholders over cargo clearance processes.

In a statement on Monday, September 7, the authority said the requirement for an export declaration during the clearance of imported goods is provided for under the law.

It added that its mandate includes implementing legislation while facilitating legitimate trade and business operations.

"KRA wishes to clarify that the requirements for an export declaration in the clearance of imported goods is anchored by law under Section 23B of the Tax Procedures Act. 

"As a statutory institution, KRA is mandated to implement and administer legislation enacted by Parliament, while at the same time facilitating legitimate trade and business operations," the statement read.

KRA said it would continue engaging stakeholders affected by the implementation of the requirements, with the aim of ensuring compliance without unnecessarily disrupting legitimate business activities.

"KRA is committed to working closely with affected stakeholders to ensure that the implementation of statutory requirements promotes compliance while minimising unnecessary disruption to legitimate business activities," the statement added.

On concerns surrounding the valuation of motor vehicles, KRA said the matter is currently before the courts and that it would therefore not comment on the merits of the valuation methodology.

The authority cited the principle of sub judice, saying it would await the court's direction and determination before commenting further on the matter.

"With regard to motor vehicle valuation, KRA notes that the matter is currently before the Court.

"The Authority therefore refrains from commenting on the specific merits of the valuation methodology in accordance with the principle of sub judice, pending the direction and determination of the court," the statement further read.

This comes days after KRA opened a six-month Tax Amnesty Programme giving eligible taxpayers an opportunity to have interest, penalties and fines relating to qualifying tax liabilities waived.

In a statement on Friday, September 4, the authority said the programme took effect on July 1, 2026, and will run until December 31, 2026, covering qualifying tax liabilities for periods up to December 31, 2025.

KRA said the amnesty applies to interest, penalties and fines subject to the conditions set out under the law.

"The amnesty covers interest, penalties and fines relating to tax liabilities for periods up to 31st December, 2025, subject to the conditions provided under the law," the statement read.

According to KRA, taxpayers with outstanding principal taxes for periods up to December 31, 2025 can qualify by fully paying the qualifying principal tax on or before December 31, 2026. 

Those unable to make a single payment can apply for an Automatic Payment Plan through iTax, but must ensure the entire outstanding principal tax is settled by the December 31 deadline to benefit from the amnesty.

Taxpayers with unfiled returns for periods up to December 31, 2025 are required to file all outstanding returns during the amnesty period. 

Those filing returns without outstanding principal taxes, including Nil returns, will automatically qualify for amnesty on late filing penalties.

For taxpayers filing returns that result in principal taxes being due, the amnesty will apply once the principal taxes are fully paid on or before December 31, 2026.

Taxpayers who have no outstanding principal tax for periods up to December 31, 2025 but have outstanding interest, penalties or fines will automatically qualify for the amnesty without making an application.

KRA said taxpayers who meet all the requirements will have the amnesty processed automatically through the iTax system.

“Once all the qualifying conditions are met, the amnesty will be automatically granted, the taxpayer ledger updated and the Amnesty Certificate and notification will be availed through the iTax system,” the statement added.