The higher
prices follow a decision by the East African Community (EAC) to allow Kenya to
retain higher import duty rates on selected consumer and industrial goods for
another year.
The customs
measures took effect on July 1, after the EAC Secretariat approved Kenya's
request to continue charging import duties above the Common External Tariff
(CET) on selected products.
The decision
affects a wide range of imports, including baby diapers, mobile phones,
liquefied petroleum gas (LPG) cylinders and stoves, lubricants, wood products,
optical fibre cables, iron and steel products, furniture and motor vehicles.
The EAC said
the higher tariffs are intended to protect local manufacturers while boosting
government revenue.
"The
EAC Council approved Kenya's request to continue charging higher import duties
on selected goods, including mobile phones, optical fibre cables, iron and
steel products, gas cylinders, LPG stoves and other manufactured items,"
the notice states.
The changes
underscore Kenya's growing reliance on tariff protection to support domestic
industry while raising additional tax revenue, even as consumers continue
grappling with the high cost of living.
For households, the impact is expected to be most visible on everyday items.
Imported premium diaper brands, which remain popular despite expanding local
production, are likely to become more expensive as importers pass on higher
costs to retailers and consumers.
The mobile phone market is also expected to feel the impact. Kenya imports millions of smartphones annually, and higher duties are likely to push up prices, particularly for premium models.
Although the government has promoted local
smartphone assembly, most devices sold locally are still fully imported.
The EAC also allowed Kenya to continue charging higher duties on imported LPG cylinders and cooking stoves.
While the tariff applies to the equipment rather than the
cooking gas itself, distributors warn it could discourage more households from
switching to cleaner cooking energy by increasing the upfront cost of cylinders
and cookers.
The move comes months after Parliament rejected the government's proposal to introduce an open tender system for cooking gas imports following complaints that dealers had failed to lower prices despite tax incentives.
MPs also rejected
regulations that would have allowed LPG to be sold in smaller token-based
quantities.
"The
committee recommends that the House annuls in entirety the Petroleum (Operation
of Common Petroleum Facilities) Regulations, 2025," the National Assembly
Committee on Delegated Legislation said in its report.
Imported
furniture will also remain subject to higher duties to encourage local
manufacturing, although consumers seeking imported brands are expected to pay
more.
Motorists
are also unlikely to escape the impact, with higher duties maintained on
imported passenger cars, buses and commercial vehicles, adding to costs already
driven by freight charges, exchange rate movements and domestic taxes.
Construction
firms and manufacturers could face higher operating costs after the EAC
retained elevated tariffs on imported iron and steel products, optical fibre
cables, lubricants and other industrial inputs.
The Gazette
also introduces a 10 per cent import duty on packaged software supplied through
physical media such as CDs, DVDs and USB drives, including operating systems,
antivirus software and office suites.
Although
physical software has largely been replaced by online downloads, the move marks
Kenya's first tariff adjustment following the expiry of the World Trade
Organisation's moratorium on customs duties for digitally delivered products in
March.
According to
the Gazette, the duty will make such imports more expensive for businesses,
even as other EAC partner states continue applying a zero per cent rate.
PricewaterhouseCoopers senior manager for customs and international trade, Corazon Ongoro, said one notable
amendment is that goods imported exclusively for Public-Private Partnership
(PPP) infrastructure projects will now attract zero import duty.
"To
qualify, the project must be approved by the Cabinet Secretary for the National
Treasury based on a recommendation from the Cabinet Secretary in charge of the
project," she said.
The Council
also approved several incentives to lower production costs for manufacturers,
including one-year duty remissions on industrial raw materials used in making
garments, footwear, pharmaceuticals, roofing products, leather goods and
telecommunications devices.
Kenya also
retained duty-free access for components used to assemble smart communication
devices, supporting plans to expand local electronics manufacturing.
If
manufacturers pass on the savings, locally assembled products could become more
competitive against imported alternatives.
RELIEFS
The Council
approved lower duty rates on selected products, including lithium-ion
batteries, rice, second-hand clothing and imported dates during the
January-February 2027 period.
Lower battery duties are expected to support Kenya's growing electric mobility and renewable energy sectors.
Reduced import duties on rice may also help moderate food prices if traders pass the savings to consumers.
The Gazette further grants duty-free treatment for goods imported exclusively for approved Public-Private Partnership (PPP) infrastructure projects, provided they receive approval from the National Treasury and the relevant implementing ministry.
The measure complements VAT exemptions introduced under the Finance Act, 2026 and is expected to reduce costs for strategic infrastructure investments.
Other amendments include extending customs duty exemptions to goods imported for official use by Kenya's National Intelligence Service, allowing airlines to import specialised boarding pass paper duty-free and simplifying procedures for approving humanitarian relief imports during emergencies.
Across the region, other EAC partner states also secured country-specific tariff adjustments.
