Car importers want the Kenya Revenue Authority (KRA) to exempt them from a new rule requiring all imports to be accompanied by a certificate of origin. They say this is duplicative and adds unnecessary costs.
Through their lobby group, the Car Importers Association of Kenya (CIAK), the traders said that car importation already involves documents containing sufficient information to verify the origin of the units, including logbooks, export papers, and inspection certificates.
They added that the new requirement would inflate paperwork costs by about Sh2 billion annually, which would be passed on to buyers.
“We are asking the authority to exclude car dealers from this rule since it will add to the cost, yet we already have such documents,” said Peter Otieno, CIAK's national chairman.
The dealers questioned the rationale behind introducing additional documentation that would incur a fee and benefit a foreign entity while increasing costs for local buyers.
“In 2024, between January and December, Kenya imported 72,486 units with each required to pay Sh28,000 for the certificate of origin if it is introduced, which would result in the export of more than Sh2,029,608,000. [This amount] should not be spent while there are such documents to verify a vehicle’s origin since no unit can be cleared in different border points without such documents,” CIAK said.
A certificate of origin declares in which country a commodity or good was manufactured. It contains information regarding the product, its destination, and the country of export. It contains details such as the manufacturer's name, address, and phone number; the exporting agent's name and contact information; the importer's or receiver's name and contact information; the bill of lading or waybill number; and the quantity, dimensions, and weight of the item being shipped.
On July 9, 2025, KRA mandated that all imports into Kenya must be accompanied by a certificate of origin, effective from July 1, 2025. This requirement forms part of the provisions of the 2025 Finance Act and aims to enhance transparency and verify the origin of goods. Importers have been granted a grace period until September 30, 2025 to comply; after this date, non-compliant shipments may face penalties, including seizure or forfeiture.
Previously, certificates of origin were only required for goods imported from the East African Community, the Common Market for Eastern and Southern Africa and the European Union in order to obtain preferential treatment. The CIAK has joined the Shippers Council of Eastern Africa (SCEA) in calling for further consultations before the directive is fully enforced.
“We are appealing that this requirement should not apply to motor vehicles at all. We hope KRA will consider our request,” said Mr Otieno.
SCEA Chief Executive Officer Agayo Ogambi described the certificate of origin as an unnecessary non-tariff barrier that is likely to delay the clearance of cargo.
“We appreciate the transitional period, but we look forward to engaging the Commissioner of Customs KRA on its implementation and implications. We shall be seeking on behalf of our members the rationale and justification from KRA and also share our concerns and recommendations,” said Mr Ogambi.
He added that the cost of a certificate of origin varies depending on whether it is preferential or not and whether the exporter is a member of the issuing organisation.
The KRA says that the certificate will help to ensure that traders meet import regulations and curb smuggling and document concealment.
