KRA Introduces Mandatory Certificate of Origin for All Imported Goods
The Kenya Revenue Authority (KRA) has announced that, effective July 1, 2025, all goods imported into the country must be accompanied by a Certificate of Origin (COO). This new directive is part of a broader tightening of control measures and is based on Section 44A of the Tax Procedures Act, as amended by the Finance Act 2025.
The Certificate of Origin (COO) must include:
- Name and address of the exporter
- Name and address of the importer
- Port of origin
- Accurate description of the goods
- Quantity of the goods
- Country of origin
- Country of destination
Why Kenya Introduced the Certificate of Origin
The main reasons behind this introduction are:
- Verification of Goods Origin: The Certificate of Origin allows customs authorities to determine the country of manufacture or production of goods. This is crucial for various purposes, including the correct application of customs duties.
- Combating Non-Compliant Imports: The COO helps protect Kenyan businesses from the import of products that do not comply with local standards or are subject to sanctions.
- Compliance with Trade Agreements: Traditionally, the Certificate of Origin was only required for goods benefiting from preferential duties under trade agreements. Extending this to all imports aims to ensure that all trade agreements are respected and that there are no misunderstandings regarding tariffs.
- Traceability and Tariff Application: The certificate must contain details such as the name and address of the exporter and importer, the port of origin, an accurate description of the goods, their quantity, country of origin, and country of destination. These details are essential for correctly tracing goods and applying appropriate tariffs.
- Prevention of Illicit Practices: The KRA has warned that failure to present a valid Certificate of Origin will result in penalties, including the seizure or confiscation of goods. This serves to deter the import of undeclared products or those with fraudulent origins.
Grace Period: A Time for Adjustment
To allow importers and exporters a smooth transition, the KRA has provided a grace period until September 1, 2025. During this time, it will be possible to regularize shipments that, despite lacking a COO, are already in transit or have arrived in the country.
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