Kenyan importers are staring at a fresh wave of compliance headaches and potential cost escalations after the Kenya Revenue Authority (KRA) announced that, effective October 1, 2025, all consignments must be accompanied by a Certificate of Origin (COO).
The directive, anchored in Section 44A of the Tax Procedures Act, CAP. 469B (amended by the Finance Act, 2025), is being sold as a trade accountability measure. But industry insiders warn it could quickly translate into higher clearance costs, supply chain delays, and a squeeze on consumers already grappling with inflation.
Importers Cry Foul
Clearing agents and importers who spoke to The Standard Business said obtaining a COO from foreign authorities is not only bureaucratic but also expensive and time-consuming.
“Most countries charge fees for issuing a COO, and the process can take days if not weeks. For fast-moving consumer goods and perishable imports, this could be disastrous,” said one Nairobi-based freight forwarder.
The fear is that delays at the Port of Mombasa and airports could pile up as KRA officials demand stricter paperwork, effectively slowing down supply chains. Importers warn that the cost of compliance will not be absorbed by traders but passed directly to consumers.
Exemptions Offer Little Relief
While KRA has listed exemptions—including used motor vehicles, personal baggage, human remains, and samples of no commercial value—most high-value commercial imports such as electronics, machinery, and retail goods remain exposed.
The limited provisional measures, such as allowing export declarations or KEBS-issued PVOC certificates in place of a COO, are being dismissed by traders as “temporary band-aids.”
Business Climate at Stake
This move comes against a backdrop of strained investor confidence, with Kenya already ranked among the most expensive countries for doing business in East Africa due to taxes, levies, and red tape.
Economist James Muriithi warns that the COO requirement could tilt the playing field in favor of smugglers and grey importers, undermining KRA’s very objective.
“Formal traders will face higher costs and longer delays. Meanwhile, contraband operators, who bypass the system entirely, will thrive. This could widen the illicit trade market,” he said.
Transporters Also Under Pressure
The COO directive lands just as transporters are battling their own compliance storm. On Monday, KRA demanded that all transporters of goods under customs control renew their 2026 licenses with detailed paperwork, including motor vehicle logbooks, insurance, and COMESA Yellow Cards for foreign trucks.
Hauliers say this double burden—on both importers and transporters
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