Taxation of personal goods at points of entry into Kenya has upset a section of the public after KRA strictly started enforcing the customs regulations.
According to Kenya Revenue Authority, individuals are allowed to carry personal or household items worth $500 (Sh75, 380 at current exchange rate) and below.
“Anything above the amount shall be subjected to tax,” KRA said in a recent update.
It is not a new import rule as it has been in existence under the customs & border control department – East African Community Customs Management Act of 2004, which was revised in 2019.
Under the rule, customs duty applies to all goods brought into the country, save for exceptions provided by law, among them the cap on the value of personal and household goods.
New items brought into the country are however taxable.
Travellers are required to declare items purchased and are carrying upon returning or coming into the country, items inherited while abroad, goods bought in duty-free shops beyond the allowed limit, items taken abroad for repairs and items being brought back as gifts.
One must also declare items they intend to sell or use in business, including merchandise that they took out of the country.
Currency above $10,000 or its equivalent must also be declared at customs upon arrival.
While leaving the country, one should declare items purchased for business promotional and commercial purposes, which will be taxable on return.
All electronics brought in the country including i-phones, i-pads, play station, laptops, computers, stereos, television, projectors, video recorders among others must also be declared.
Passengers are however exempted on their "used personal effects" KRA notes, meaning individuals can travel freely with their gadgets that are in use.
There are also exemptions for returning residents, items for use by the President, military officers and diplomats.
Alcoholic beverages of all kinds, perfumes, spirits and tobacco products are taxable.
However, a clause that gives customs officers the powers to determine the value of goods and their taxable status is seen as a gap to impose taxes where they should not apply, amid cries of harassment by customs officials.
On seeking clarification, deputy commissioner, marketing and communication Grace Wandera referred the Star to the KRA Customs Handbook on arrival and departure information, which details the requirements for travellers.
However there are concerns over exorbitant taxes, which have forced some individuals to abandon their items.
"I think sometimes customs officials exaggerate the amount of taxes to make you give up on your goods,” Joseph, a frequent traveller told the Star yesterday.
In some instances, travellers with friends or relatives in customs, police or airport management seek help to have their goods checked out at the airport, to avoid screening.
Kenyans have since taken to social media to complain over the tax regime and potential gaps that have left passengers at loggerhead with customs officials.
Hundreds of travellers have seen their personal items seized, which end up at the auction.
“That $500 limit is a myth. I brought in a $285 (Sh42, 935) HP laptop and KRA charged me Sh29, 000 in duty, before readjusting to Sh12, 000. I have the documents to prove it. KRA is not implementing this correctly and confusing the likes of Kenya Aiports,” @KimWaTransport wrote on X (formerly Twitter).
@55jabo wrote : “A complex taxation regime or obligation in any form that subjects individuals to significant level effort for compliance is never good for a country. Taxation must be simple, predictable and reasonable.”
The customs and border control department auctions goods that remain uncollected after seizure for failure to comply with the tax rules.
Common items that are traditionally auctioned at the Jomo Kenyatta International Airport include mobile phones, electronics, personal effects–clothes, shoes and household items, gifts, goods and office equipment sent by relatives and business partners abroad, cosmetics, sports equipment among others.
The East African Community Act, 2004, allows disposal of goods, which have been deposited in a customs warehouse and not lawfully removed within thirty days after deposit.
The commissioner is required to give notice by publication in the gazette that unless such goods are removed within thirty days from the date of notice, they shall be deemed to have been abandoned to customs for sale by public auction.
