KRA Defends Legal Basis for Cargo Clearance Rules

The Kenya Revenue Authority (KRA) has moved to address mounting concerns from clearing agents and motor vehicle dealers over cargo clearance procedures, insisting that its requirements are grounded in law rather than administrative overreach.

In a press statement issued Monday, the tax authority acknowledged complaints raised by the Kenya International Freight and Warehousing Association (KIFWA), along with clearing agents, motor vehicle dealers, and other trade stakeholders regarding the clearance of imported goods.

KRA said the requirement for an export declaration during the clearance of imported goods is not a discretionary policy but a legal obligation set out under Section 23B of the Tax Procedures Act. The Authority emphasized that, as a statutory body, it is bound to enforce legislation passed by Parliament, even as it works to support smooth trade operations.

“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 read.

On the contentious issue of motor vehicle valuation — a matter that has drawn particular criticism from dealers — KRA declined to engage on the substance of the dispute. The Authority noted that the valuation methodology is currently the subject of ongoing court proceedings, and cited the legal principle of sub judice as grounds for withholding comment until the matter is resolved judicially.

KRA closed its statement by reaffirming its intent to maintain dialogue with freight forwarders, clearing agents, motor vehicle dealers, and other stakeholders, saying it would continue pursuing “practical and lawful solutions” to challenges affecting cargo clearance and trade.

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