In this Act, unless the context otherwise requires—

"Authority” means Kenya Revenue Authority established by the Kenya Revenue Authority Act (Cap. 469);

"authorised officer” means any officer appointed under section 3;

"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for finance;

"Commissioner" means the Commissioner General appointed under the Kenya Revenue Authority Act (Cap. 469) or any other Commissioner to whom powers or functions have been delegated under that Act;

"concessional loan" means a loan with at least twenty-five percent grant element;

"customs value" for the purposes of ascertaining the value for charging, means—

"East African Community Partner States" means the Republics of Burundi, Rwanda, Uganda and the United Republic of Tanzania;

"export" means to take or cause to be taken out of Kenya to a foreign country to an export processing zone or special economic zone;

"export processing zone" means an export processing zone designated as such under the Export Processing Zones Act (Cap. 517);

"importer" in relation to goods, means a person who owns the goods, or any other person who is, for the time being, in possession of or beneficially interested in the goods at the time of importation;

"official aid funded project" means a project funded by means of a grant or concession loan in accordance with an agreement between the Government of Kenya and any foreign government, agency, institution, foundation, organization or any other aid agency;

"person" means an individual, company, partnership, association of persons, trust, estate, the Government, a foreign government or a political subdivision of the Government or foreign government; and

"Special Economic Zone" has the meaning assigned to it under the Special Economic Zones Act, 2015.

For the purpose of this Act, goods shall be classified by reference to the nomenclature set out in Annex 1 to the Protocol on the Establishment of the East African Community Customs Union and in interpreting the Annex; the general rules of interpretation set out therein shall apply.

The Commissioner shall be responsible for the control and collection of, and accounting for, duties, fees and levies paid under this Act and shall, subject to the direction and control of the Cabinet Secretary, have the superintendence of all matters relating thereto.

The Commissioner shall appoint such officers as may be necessary for the administration of this Act.

The Commissioner may authorize any officer appointed under this section to perform any of the functions of the Commissioner under this Act or the regulations, other than the functions under subsection (2).

Every authorised officer appointed under this section shall enforce, and ensure due compliance with, the provisions of this Act and the regulations, and shall make all due inquiries in relation thereto.

Every authorised officer appointed under this section shall, on demand, produce such documents establishing his or her identity as may be approved by the Commissioner.

Every authorised officer shall, in carrying out the provisions of this Act, regard and deal with all documents and information relating to fees and charges and all confidential instructions in respect of the administration of this Act which may come into his possession or to his knowledge in the course of his duties as confidential.

Any decision made and any notice or communication issued or signed by any authorised officer may be withdrawn or amended by the Commissioner or by the authorised officer concerned, and shall, until it has been so withdrawn, be deemed to have been made, issued or signed by the Commissioner.

There shall be paid a levy to be known as the export levy, on all goods specified in the First Schedule.

The levy shall, where more than one rate is specified, be the higher of the ad valorem or the specific rate specified in the First Schedule and shall be paid by the exporter at the time of entering the goods for export.

The ad valorem rate shall be based on the custom value of the goods.

Deleted by Act No. 4 of 2023, s. 69. [ Act No. 4 of 2023, s. 69.]

There shall be paid a fee to be known as the import declaration fee, on all goods imported into the country for home use.

The fee shall be at the rate of two point-five per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods for home use.

Deleted by Act No. 4 of 2023, s. 68 (b).

Despite subsection (1)—

An importer of goods other than goods specified in Part A of the Second Schedule shall complete the prescribed import declaration form.

An importer shall present a copy of the import declaration form completed under subsection (4) to the Commissioner at the time of entering the goods for home use.

Out of the fee collected under subsection (2), ten per cent shall be paid into a Fund established and managed in accordance with the Public Finance Management Act, 2012 (No. 18 of 2012).

The monies in the Fund under subsection (6) shall be used for the payment of Kenya's contributions to the African Union and any other international organisation to which Kenya has a financial obligation. [Act No. 23 of 2019, s. 37, Act No. 2 of 2020, Sch., Act No. 8 of 2020, s. 20, Act No. 22 of 2022, s. 46, Act No. 4 of 2023, s. 68.]

There shall be paid a levy to be known as the export and investment promotion levy, on all goods specified in the Third Schedule, imported into the country for home use.

The levy shall be at the rates specified in the Third Schedule and shall be paid by the importer of such goods at the time of entering the goods into the country for home use.

The purpose of the levy shall be to provide funds to boost manufacturing, increase exports, create jobs, save on foreign exchange and promote investments.

The export and investment promotion levy shall not be charged on goods originating from East African Community Partner States that meet the East African Community Rules of Origin.

The funds collected from the levy shall be paid into a fund established and managed in accordance with the Public Finance Management Act, 2012 (No.18 of 2012). [Act No. 4 of 2023, s. 70.]

There shall be paid a levy to be known as the railway development levy, on all goods imported into the country for home use.

The levy shall be at the rate of one point-five per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods into the country for home use.

Deleted by Act No. 4 of 2023, s. 71 (b).

The purpose of the levy shall be to provide funds for the construction and operation of a standard gauge railway network in order to facilitate the transportation of goods.

The Cabinet Secretary shall, by regulations, establish a railway development levy fund into which all the proceeds of the levy shall be paid.

The fund referred to in subsection (4) shall be established, managed, administered or wound up in accordance with section 24 of the Public Finance Management Act, 2012 (No. 18 of 2012) and the regulations made under that Act.

No levy shall be charged in respect of the goods specified in Part B of the Second Schedule when imported or purchased before clearance through customs. [Act No. 23 of 2019, s. 38, Act No. 2 of 2020, Sch, Act No. 22 of 2022, s. 47, Act No. 4 of 2023, s. 71.]

There shall be paid a levy to be known as the anti-adulteration levy, on all illuminating kerosene imported into the country for home use.

The levy shall be at the rate of eighteen shillings per litre of the customs value of the illuminating kerosene and shall be paid by the importer at the time of entering the illuminating kerosene into the country.

The Commissioner shall refund the levy on the written application of an importer where the Commissioner is satisfied that the levy was paid in respect of illuminating kerosene that has subsequently been used by a licensed or registered manufacturer to manufacture paint, resin or shoe polish.

The levy shall not apply to a licenced or registered manufacturer of paint, resin or shoe polish. [Act No. 10 of 2018, s. 50, Act No. 23 of 2019, s. 39, Act No. 8 of 2021, s. 49.]

There shall be a fee to be known as the processing fee on all motor vehicles excluding motorcycles imported or purchased duty free prior to clearance through customs under the Fifth Schedule to the East African Community Customs Management Act, 2004.

The fee shall be Kenya shillings ten thousand applicable to all motor vehicles excluding motorcycles imported or purchased duty free specified in paragraphs 4, 5, 6, 7, 8, 9, 10 and 11 of Part A, and paragraph 3 and 5 of Part B under the Fifth Schedule to the East African Community Customs Management Act, 2004. [Act No. 2 of 2020, Sch.]

an application for refunds, ascertainment and repayment of fees and levies overpaid or paid in error under this Act; or

the determination by the Commissioner of penalties and interests on fees and levies that remain unpaid.

Subject to such conditions as the Commissioner shall prescribe, formalities or procedures under this Act may be carried out by use of information technology in the customs computerized system.

The provisions of the East African Community Customs Management Act, 2004, relating to registration of users, access and use on the customs computerized system shall apply for the purposes of carrying out formalities and procedures under this Act.

A person who contravenes the provisions of this Act commits an offence.

A person convicted of an offence under this Act, where no specific penalty is provided, shall be liable to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding two years, or to both.