Kenya's 2026 Customs Valuation Rules: What Importers Must Keep for Five Years

The price on an invoice is only the beginning of the story. Importers must be able to explain how that price was arrived at, and support it with records long after the goods have left the port.

A container arrives at the Port of Mombasa. The importer has paid the supplier, the shipping line has issued its documents, the customs entry is lodged, duties are assessed and the cargo is released.

Everyone moves on.

Until, perhaps two years later, the Kenya Revenue Authority (KRA) asks a question: can you prove the value you declared when those goods entered Kenya?

The importer produces the commercial invoice. The clearing agent forwards the customs entry. The accountant searches through old emails. The supplier has changed its accounting system, the export documents are buried in an archive, and the employee who handled the transaction has since moved on. A routine verification becomes an expensive investigation into the history of a shipment.

Kenya's Finance Act 2026 has made one part of that exercise explicit. Importers must obtain and retain the export documents issued in the country of export, together with supporting records. KRA's published guidance sets the retention period at five years from the date of importation, and says the documents must be produced when KRA requests them.

The rule is more than an instruction to keep paperwork. It requires an importer to explain the commercial story behind a declaration, not merely produce the invoice that tells KRA what the supplier charged.

What has changed?

The Finance Act 2026 received presidential assent on 23 June 2026 and inserted a new section 23B into the Tax Procedures Act. The provision took effect on 1 September 2026, not on 1 July when most of the Act's other measures commenced.

Section 23B requires a person who imports, or claims to have imported, goods into Kenya to obtain and retain an export declaration, export entry, customs export certificate or equivalent document issued by the competent authority in the country of export, evidencing that the goods were lawfully exported. The particulars the document should contain, as reported by commentators, include:

• the name and address of the exporter and of the importer;
• a description of the goods, with their quality, value and tariff classification;
• the countries of export and destination;
• the date of exportation; and
• the reference number assigned by the customs authority in the exporting country.

KRA's guidance states that the required documents must be retained for at least five years and produced on request.

Why KRA wants the export declaration

Customs duties and other taxes are assessed on the customs value of imported goods. The declared value therefore has a direct bearing on the revenue payable.

The transaction value, meaning the price actually paid or payable for the goods, subject to the applicable adjustments and conditions, is generally the starting point. An invoice alone may not answer every question:

• Does the declared price reflect the actual transaction between buyer and seller?
• Were there discounts, rebates or other arrangements that affected the price?
• Is the quantity declared consistent with the goods actually exported?
• Does the declared value correspond with the export documentation?
• Are the description and tariff classification consistent across the documents?
• Is the declared origin supported by the relevant evidence?

An export declaration is another official record against which the import can be examined. It does not automatically determine the correct customs value. A difference between the export document and the import declaration does not, by itself, establish fraud or under valuation. Currency conversion, freight, insurance, valuation method, timing and the way information is recorded in different jurisdictions can all explain a difference. But unexplained differences invite questions, and those questions are far easier to answer when the documents have been kept.

What happens if the documents are missing?

Commentators and KRA's guidance report that where an importer cannot produce the export declaration or other satisfactory evidence of exportation, the Commissioner may reject a claim relating to the importation, value, origin, cost or ownership of the goods. The Commissioner may also determine the customs value, tax liability or a claim for deduction, exemption, refund or relief using the information available, and may impose administrative penalties as prescribed.

The consequences can be significant. An importer who later claims a substantial negotiated discount on a machinery shipment may struggle to prove it if the export documentation and commercial records are gone. An importer claiming preferential treatment on origin may face the same problem. The original declaration may have been correct. The importer may simply be unable to show why it was.

The outcome of any case will depend on its facts, the evidence and the applicable law. Nothing in the reporting suggests that a missing document automatically produces a particular tax assessment.

The five year file: what should an importer keep?

The export declaration is the central document, but the requirement is best treated as a file keeping exercise rather than a single document one. A sensible compliance file for each consignment should contain the following.

1. Export side customs documentation. The official export declaration, export entry or certificate from the exporting country. Check that it identifies the exporter, importer, goods, value, tariff classification, countries, date of export and customs reference number. If it is in a language other than English, keep the original and a reliable translation.
2. Commercial documents. The commercial invoice, purchase order, sales contract, pro forma invoice where relevant, packing list, and any credit or debit notes. Keep the written agreement behind any discount, rebate or price adjustment.
3. Payment evidence. Bank transfer confirmations, SWIFT messages, letters of credit and receipts. Where payment is made in instalments or through a related company, keep a reconciliation showing how each payment relates to the goods.
4. Transport and insurance documents. The bill of lading or airway bill, freight invoice, insurance certificate and handling statements. These help reconcile the declared value with its components.
5. Customs clearance records. The import declaration, customs assessment, proof of payment of duties and taxes, release documents and correspondence with the clearing agent or KRA.
6. Correspondence and explanations. Emails and letters on price negotiations, specification changes, shortages, damaged goods, refunds and other changes to the transaction.

The test is simple: a person who did not handle the shipment should be able to open the file years later and understand what happened.

A hypothetical example. A Kenyan business imports 500 industrial pumps from a supplier in Asia. The commercial invoice shows USD 100,000. The exporter's declaration records a different value. The importer also holds a freight invoice and evidence of a negotiated discount. There may be a legitimate explanation: the export declaration may use a different valuation basis, the discount may have been applied after the declaration was filed, or some charges may be treated differently. But the importer needs evidence, and a short reconciliation explaining the difference. Without it, the importer is left reconstructing the transaction from fragments.

The supplier is abroad. Who is responsible?

The export declaration is generated within the exporting country's customs system. A Kenyan importer may have no direct access to that system and may depend on the supplier, exporter or their customs broker to obtain it.

The obligation, however, falls on the importer. Do not assume the supplier will send the document automatically. Make it part of the purchasing and shipping process. Before dispatch, ask:

• Can you provide the official export declaration or equivalent customs document?
• Does it identify the Kenyan importer and the correct destination?
• Does it show the correct description, quantity, value and tariff classification?
• Can you provide it promptly after export clearance?
• Can it be shared electronically in a legible, verifiable format?

If a supplier cannot provide the document, escalate before shipment. Do not discover at the Port of Mombasa that a document issued abroad is missing.

The Act provides for a waiver where the customs administration of the country of export does not issue export declarations for the relevant goods. That is a specific condition, not a general exemption, and importers should seek written guidance from KRA rather than assume a waiver applies.

The Cabinet Secretary for the National Treasury is empowered to make regulations on the form, manner of production and categories of acceptable export declarations. Those regulations were not yet published at the time of writing. Importers should monitor them and any further KRA guidance.

Does this let KRA set any value it likes?

No. Section 23B strengthens the documentary evidence KRA can require. It does not displace the customs valuation law, in which the transaction value and the prescribed valuation methods still apply. Where the required evidence is not produced, KRA's powers are those set out in the provision, and any resulting determination or assessment must still be considered within the applicable legal framework.

An importer who receives an adverse assessment should examine the reasons, the evidence relied on and the objection and appeal procedures. An assessment is not correct simply because it was issued, and it should not be ignored.

Five steps to take now

• Update supplier instructions. Add the export declaration, or an acceptable equivalent, to purchase orders, shipping instructions and supplier document checklists.
• Make the document part of shipment closure. A shipment file is not complete because the cargo was released in Kenya. Confirm the export side document has been received and checked.
• Build a digital archive. Store documents in a secure, backed up system, organised by supplier, shipment reference, import entry number and date of importation.
• Reconcile the figures. Compare the export declaration, commercial invoice, payment records, freight and insurance documents and the Kenyan entry. Record explanations for material differences.
• Assign responsibility. Decide who obtains the document, who checks it, and who keeps it accessible for the full retention period. A requirement without an owner tends to be forgotten.

Older shipments

The five year period runs from the date of importation, and the requirement applies to imports from 1 September 2026. Businesses should not read the start date as permission to discard earlier records. Customs, tax, contractual and audit obligations may still require older files, and frequent importers should review them.

The bigger picture

International trade is becoming more data driven. Customs authorities increasingly compare information across borders, agencies and commercial systems. A supplier's invoice and a handwritten explanation no longer carry a customs file on their own.

For importers, the lesson is to become organised, not to panic. An export declaration supports the commercial value and identity of goods. Supporting records explain the price, the payment, the route and the contract.

Together they give a defensible record of the transaction. Businesses that build the requirement into procurement, shipping, finance and clearance from the start will manage the change best.

A container may leave the port in a few days. The questions about its value may arrive years later. Keep the evidence, keep it properly, and keep it for five years.

How Sidoman can help

At Sidoman, we understand that importing does not end when cargo is cleared. It begins with good documentation, coordination and a clear view of the obligations attached to each shipment. We support businesses moving cargo by air and sea into Kenya and across East Africa, with attention to documentation, freight coordination and clearance.

Before your next shipment leaves its country of export, make sure the paperwork is travelling with it, even if only electronically.

Ship through Mombasa with Sidoman

Sidoman handles customs clearing and forwarding in Mombasa, air and sea shipments to destinations across East Africa, and exports to cities around the world. Talk to our team about your next shipment and the documents it needs.

Order Sidoman services on WhatsApp: +254 722 375 423

Follow Sidoman on all social platforms for Trade Law Tuesday and weekly shipping updates: X @sidoman, Instagram @sidoman254, TikTok @sidoman254, LinkedIn and Facebook.

Sources

1. Kenya Revenue Authority, "Finance Act 2026: What It Means For You", KRA guidance on the import documentation requirement, the required particulars and the five year retention period.: kra.go.ke
2. Deloitte Kenya, "New documentation rules signal tougher imports compliance", commentary on section 23B and implementation questions.: deloitte.com
3. Grant Thornton Kenya, "Analysis of the Finance Act 2026", commentary on section 23B, its required particulars and the 1 September 2026 commencement.: grantthornton.co.ke
4. EY, "Kenya enacts Finance Act, 2026", including the 23 June 2026 assent date.: ey.com
5. Kenyans.co.ke, "KRA defends export declaration requirement amid cargo clearance concerns", on retention from the date of importation.: kenyans.co.ke

General information, not legal advice. Importers should review the Act, any regulations and KRA guidance in light of their own transactions.

Sidoman Logistics, Mombasa