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KRA breaks silence on cargo clearance chaos after outcry from clearing agents and car dealers

The Kenya Revenue Authority (KRA) has responded to mounting complaints from clearing agents, freight forwarders and motor vehicle dealers over disruptions in cargo clearance, insisting that the controversial requirements at the centre of the dispute are grounded in law. In a statement issued on Monday, September 7, 2026, KRA acknowledged concerns raised by the Kenya […]

The Kenya Revenue Authority (KRA) has addressed growing frustration among clearing agents, freight forwarders, and motor vehicle dealers over delays in cargo clearance at Kenyan ports. In a statement released on Monday, September 7, 2026, KRA clarified that the export declaration requirements at the heart of the dispute are mandated by law, specifically Section 23B of the Tax Procedures Act.

This legal provision makes the requirement non-negotiable and not subject to reversal by the authority. KRA chief executive acknowledged the complaints raised by the Kenya International Freight and Warehousing Association (KIFWA), clearing agents, and motor vehicle dealers, who claimed that the new rules have slowed cargo processing and disrupted business operations, particularly in the motor vehicle sector where delays and increased compliance costs have been significant.

KRA emphasized its commitment to balancing tax law enforcement with facilitating legitimate trade. It stated that it would continue working with stakeholders to minimize disruptions while ensuring compliance with statutory requirements. However, KRA declined to comment on the valuation methodology for imported motor vehicles, citing that the matter is currently under judicial review.

This issue has been a major point of contention for vehicle importers, who are questioning the criteria used for customs valuation and its impact on taxes. Despite its defense of the legal basis for the export declaration requirement, KRA indicated openness to further dialogue with industry players to find practical solutions that comply with the law and improve trade facilitation.

The statement was made as customs operations remain under heightened scrutiny from businesses seeking faster clearance and more predictable import procedures. For motor vehicle importers, the outcome of the ongoing court case on valuation and KRA's ongoing engagement with stakeholders are anticipated to significantly influence future customs clearance processes and the associated costs.

Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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