Kenya is facing higher costs for various imported goods at the Mombasa port following the implementation of new import duties under the East African Community (EAC) Common External Tariff (CET), despite the shelving of the Finance Bill, 2024.
On import duties and affected goods, the government has been allowed to charge a 10 percent import duty on crude palm oil, up from the EAC CET rate of zero percent.
Refined oils such as soya bean oil, Refined Bleached and Deodorized – RDB palm olein, and others will face a duty rate of 25 percent or $500 per metric tonne, whichever is higher, compared to the previous 25 percent EAC CET rate.
RDB palm stearin, used as a cost-effective ingredient in various applications, will now attract a duty of 25 percent or $500 per metric tonne, up from 10 percent under the EAC CET.
Imported margarine and edible mixtures will incur a 35 percent duty or $500 per metric tonne, an increase from the EAC CET rate of 35 percent.
Worn clothes will continue to be taxed at a higher rate of 35 percent or $20 per kilo, following the EAC’s approval.
Preserved or prepared vegetables will face a 35 percent duty or $400 per metric tonne, while sweet corn, tomatoes, tomato paste, and peas will see similar increases.
Imported television sets will now be subject to a 35 percent duty, up from the EAC CET rate of 25 percent.
Detergent powder and other organic surface-active agents will attract a 35 percent duty or $500 per metric tonne, compared to the previous 25 percent.
However, there are exemptions and temporary reductions. Consumers of rice will benefit from a lower duty of 35 percent or $200 per metric tonne, down from the EAC CET rate of 75 percent or $345 per metric tonne, for the next year.
The impact on vehicles and industrial goods will see all motor vehicles, which previously attracted a CET rate of 25 percent, will now face a higher duty rate of 35 percent.
Importers of trailers, semi-trailers, and wire of iron or non-alloy steel will also pay increased duties of 35 percent or $300 per metric tonne, up from the EAC CET rate of 10 percent.
The price of cooking gas is set to rise as Kenya joins Uganda in applying a 35 percent duty on Liquified Petroleum Gas (LPG) cylinders, deviating from the EAC CET rate of zero percent.
These changes, aimed at increasing government revenue, are expected to have a significant impact on the cost of living and doing business in Kenya.