Kenya Revenue Authority: New Clearance Procedure

Customer Case: Navigating KRA's New Clearance Procedure – 8 Excavators Successfully Cleared in Mombasa

In early 2026, the Kenya Revenue Authority (KRA) introduced a significant change to import clearance procedures that took the trade community by surprise. At Rich Reach, we had a shipment of 8 used excavators en route to Mombasa when the new rules were announced. This case study walks you through how we worked with our Kenyan client and local clearing agents to adapt quickly, ensure full compliance, and achieve a smooth clearance.

Background: New KRA Clearance Rules

Effective 1 October 2025, the KRA mandated that all consignments imported into Kenya must be accompanied by a Certificate of Origin (COO) issued by a competent authority in the country of export, under Section 44A of the Tax Procedures Act (as amended by the Finance Act 2025).[reference:0][reference:1] Historically, COOs were reserved for importers claiming preferential tariffs under trade agreements like EAC, COMESA, or AfCFTA. The new rule made COO a mandatory requirement for every import, regardless of origin or tariff preference.[reference:2] A transition window was provided up to 30 September 2025, after which full compliance was enforced.[reference:3][reference:4] Failure to present a valid COO constitutes an offence and may result in forfeiture or seizure of goods.[reference:5] The KRA has the authority to apply any of the penalty measures stipulated in the Tax Procedures Act, which include fines of up to 200% of the tax due, imprisonment, or both, for non-compliance.

Client Situation: A Shipment Already on the Water

In late September 2025, our Kenyan client – a infrastructure company based in Nairobi – placed an order for 8 used excavators (5 units of Caterpillar 320D and 3 units of Komatsu PC200-8). The shipment departed from Shanghai on September 28, 2025, just days before the transition window closed on September 30. By the time the ship was en route, the full compliance deadline had passed. The client was concerned: Would the shipment be delayed or seized at Mombasa port?

Step 1: Understanding the Exemptions (The Good News for Used Goods)

We immediately engaged our local customs clearing agent in Mombasa to interpret the new regulations. The KRA had published a list of exemptions, and importantly for us, used goods, including used motor vehicles and second-hand machinery, were listed as exempt categories.[reference:6][reference:7][reference:8] Other exempt items include personal baggage, postal parcels, human remains, temporary imports, and small medicinal packages under prescription.[reference:9] Privileged persons and institutions under the EAC Customs Management Act are also exempt.[reference:10] So, used excavators were explicitly exempt from the mandatory COO requirement. However, this alone did not guarantee trouble-free clearance.

Step 2: Core Documentation Still Required

Even with the exemption, the KRA still required full standard documentation for all imports. For used machinery, the mandatory clearance documents include:

✅ Commercial Invoice – with accurate description, quantity, and declared value
✅ Packing List – matching the invoice, with serial numbers and year of manufacture clearly listed (critical for used equipment)
✅ Bill of Lading – original copy, showing Unique Consignment Reference (UCR)
✅ Import Declaration Form (IDF) – generated by the importer through KRA's system before arrival[reference:11]
✅ Certificate of Conformity (CoC) – from KEBS PVoC program for regulated products[reference:12]
✅ KRA PIN Certificate – importer's taxpayer registration
✅ Single Administrative Document (SAD) / Customs Entry (Form C52) – lodged by clearing agent[reference:13]

Step 3: Securing the PVoC/CoC Certificate Before Departure

One of the most critical steps is the Pre-Export Verification of Conformity (PVoC) program managed by the Kenya Bureau of Standards (KEBS) through authorized agencies such as Cotecna, SGS, Bureau Veritas, and Intertek.[reference:14][reference:15] For the PVoC process on used excavators, the exporter must prepare a detailed equipment condition report including photos of the unit, its nameplate (showing brand, model, serial number, and year of manufacture), and engine and chassis numbers. These documents are submitted to the PVoC agency along with the commercial invoice and packing list. An authorized inspector then verifies the documents and, depending on the agency's requirements, may conduct an in-person inspection of the equipment at the exporter's facility or accept a video inspection. Once approved, the agency issues the Certificate of Conformity (CoC), which must accompany the shipment to Kenya. Our 8 units had valid CoC certificates issued before departure – a crucial factor that saved weeks of delay. Without a CoC, the shipment would be rejected at the port, or KEBS could permit clearance only after a destination inspection – which carries a penalty of 15% of the CIF value, plus a 15% security deposit and inspection fees.[reference:16]

Step 4: Pre-Arrival Preparations – IDF and Customs Entry

While the shipment was still at sea, we instructed the client to:

• Generate the Import Declaration Form (IDF) through KRA's iTax system. The IDF fee is based on the CIF value of the shipment and must be paid before customs entry can proceed.[reference:17]
• Secure the Unique Consignment Reference (UCR) number generated by the IDF – this number must be referenced on all shipping documents, including the Bill of Lading.
• Engage a licensed clearing agent to submit the electronic Customs Entry (Form C52) through KRA's Integrated Customs Management System (iCMS).[reference:18]

Step 5: Arrival at Mombasa Port – The Clearance Process

The vessel arrived at Mombasa Port on April 15, 2026. The actual clearance process took 6 days – well within the typical 2-5 day range for standard clearance,[reference:19] even considering the new COO rules. Here's what happened each day:

✅ Day 1 – Document submission: The clearing agent lodged the Customs Entry through iCMS, attaching all required documents including the commercial invoice, packing list, Bill of Lading, IDF, CoC certificates, and a cover letter noting the exemption for used goods under EACCMA Schedule 5.
✅ Day 2 – Risk assessment and verification: KRA performed automated risk profiling and verified the documents against their records.[reference:20] The shipment was flagged for physical inspection – common for used machinery shipments.
✅ Day 3 – Physical inspection: KRA and KEBS officers inspected the excavators at the port container freight station. They checked serial numbers against the CoC certificates and packing list, verified the year of manufacture, and assessed the machine condition.
✅ Day 4 – Duty calculation and payment: Customs duty for used excavators in Kenya depends on the HS classification under the EAC Common External Tariff (CET). Capital goods (including construction machinery like excavators) often fall under the 0% duty band to encourage investment in infrastructure and productive sectors. Additionally, importers must pay:
 • Import Declaration Fee (IDF): 2.5% of CIF value (increased from 2% in 2024)
 • Railway Development Levy (RDL): 2% of CIF value (increased from 1.5% in 2024)
 • Value Added Tax (VAT): 16% of the combined dutiable value[reference:21]
✅ Day 5 – Final approvals: The clearing agent submitted proof of payment, and KRA issued the release order.
✅ Day 6 – Cargo release: The 8 excavators were released from the port and trucked to the client's yard in Nairobi.

Avoiding pitfalls: Throughout the process, we ensured that all serial numbers matched exactly between the commercial invoice, packing list, and CoC certificates – any discrepancy could have triggered a prolonged "Inspection Required" status of 5-10 days or more.[reference:22]

Key Lessons Learned for Future Kenya Shipments

Based on this real experience, we now implement these best practices for all Kenya-bound used excavator shipments:

✔ Start documentation early – Begin the PVoC/CoC process at least 3 weeks before the planned departure date.
✔ Pre-clearance is your best friend – Submit IDF and Customs Entry documents before the vessel arrives. This practice, known as pre-clearance, helps reduce delays and speeds up cargo release.[reference:23]
✔ Use a licensed and experienced local clearing agent – The new COO rule and its exemptions create complexity; only an agent familiar with the EAC CMA 2004 Fifth Schedule exemptions can correctly classify used goods. Verify your agent's KRA license through official channels.[reference:24]
✔ Obtain COO as insurance – Even though used goods are exempt, having a COO available provides an extra layer of compliance in case the exemption is narrowly interpreted during inspection.
✔ Packing list precision saves clearance days – For each excavator, the packing list must clearly state: brand, model, serial number, year of manufacture (stamped on the machine's nameplate), engine number (if available), and physical dimensions/weight. A single digit mismatch between the packing list and the nameplate can trigger a "document discrepancy" hold that adds days or even weeks to the clearance timeline.
✔ Know your duty rates – Confirm the HS Code classification for excavators (generally 8429.XX) and whether the 0% capital goods duty band applies. Failure to correctly classify may result in overpayment or underpayment, both of which can trigger lengthy valuation disputes.
✔ Budget for IDF and RDL increases – Since 2024, IDF increased from 2% to 3%, and RDL from 1.5% to 2.5% – factor these into your total landed cost calculations.
✔ Communicate regulatory changes promptly – As a supplier, we now send a compliance checklist to every Kenya client before shipment, confirming they have an active KRA PIN, engaged a licensed clearing agent, and are ready to generate the IDF.

Rich Reach – Your Trusted Partner for Kenya Imports

At Rich Reach, we stay current with import regulations in all major destination markets. This case demonstrates our ability to:

✅ Adapt quickly – We responded to a mid-shipment regulatory change without panic, working methodically to ensure compliance.
✅ Provide end-to-end support – From machine selection and on-site inspection to documentation, shipping, and customs clearance assistance.
✅ Maintain transparent communication – The client was updated daily on the clearance progress, with no hidden costs or surprises.
✅ Simplify payment – As always, our simple T/T (cash before shipment) policy applied – no L/C complexity. The client inspected 6 of the 8 units via live video call before payment (the remaining 2 were from a repeat order with an established track record).

Contact Rich Reach for Your Kenya-Bound Shipment

Whether you are importing 1 excavator or a full fleet, we can help you navigate Kenya's import procedures. Contact us for a free consultation, including pre-shipment compliance checklist and estimated total landed duty cost.

Email: sales-01@richreach.cn  |  amy@richreach.cn
Phone / WhatsApp:
Frida: +86 18110289118
Amy: +86 18297527921

Our Location:
Approx. 150m east of Baogong Ave & Dazhong Rd intersection, Longgang Comprehensive Economic Development Zone, Yaohui District, Hefei, Anhui (about 250m east of Poly Luolan Spring), China

Rich Reach – Your partner for used excavator exports to Kenya. Compliant, transparent, reliable.