The minimum value of personal effects that passengers can bring into Kenya without being taxed has been raised fourfold to $2,000 (Sh259,477) from $500 (Sh64,887.31), handing a major relief for thousands of travelers long inconvenienced by product seizures by tax officials.
This follows gazettement of Legal Notice No 167 of 2024 by the East African Community (EAC) via which the bloc’s Council of Ministers amended Paragraph 9 of the fifth Schedule of the EAC Customs Management Act (EACCMA)—raising the threshold to $2,000 (Sh259,477) effective July 1, 2024.
“Goods up to the value of United States Dollars two thousand for each traveller in respect of goods, other than goods referred to in paragraph 8 of this schedule, shall be exempted when imported by the traveller in his or her accompanies baggage or upon his or her person and declared by him or her to an officer provided that the person has been outside the partner states for a period in excess of 24 hours” the notices reads.
The Fifth Schedule of EACCMA has Parts A and B with the former dealing with specific exemptions to customs duty while the latter deals with general exemptions.
The Kenya Revenue Authority (KRA) in 2016 set the maximum duty collected on personal effects at Sh50,000 in a bid to speed up clearance of passengers at international airports and listed the items to be subjected to customs taxes at the arrival and departure terminals.
Under guidelines by the taxman, all the taxable items attract levies at rates determined by the value of money paid at a foreign country rather than factors such as quality, size, or weight, the guidelines state.
The guidelines came in the wake of complaints lodged by passengers arriving at the Jomo Kenyatta International Airport from Dubai and China, who said they were always subjected to extortionist rates, unlike their counterparts from America and Europe.
Currently, passengers departing from Kenya are required to fill in a temporary importation form-P45- to declare items being shipped overseas for repair and accompanying tools and show the receipt during return as a declaration.
Also, items bought and carried for business promotional and commercial purposes need to be declared during departure for purposes of taxes on return. Electronics such as phones, video recorders, and projectors bought while on a trip to Kenya and currency exceeding Sh 1.29 million ($10,000) must also be declared at customs before departure.
Passengers arriving in Kenya are also required to fill passenger declaration form stating the amount paid for each item including the taxes. Items intended for sale or for use in a business including those being brought back to Kenya after they are used commercially must be declared too.
At the arrival desk, a traveller is expected to declare newly acquired items whether they were bought, inherited, or gifted and any other items bought exceeding the limits of duty-free shops.
“Duty-free shop articles sold in a customs duty-free shop are free only for the countries in which that shop is located. Therefore, if your acquired articles exceed your exemption and allowance, the articles you purchased in customs duty-free shop, whether in Kenya or abroad, will be subject to customs duty upon entering your destination country,” said KRA.
