Exporting from or importing into Kenya requires a customs entry lodged with KRA, correct tariff classification and supporting documents. Imports attract duty and VAT on the customs value, while exports are generally zero-rated for VAT; a licensed clearing agent usually lodges the declarations for you.
To import or export you need a KRA PIN, a business registration and a customs registration on KRA's customs system, which replaced the older Simba platform with the Integrated Customs Management System. Most businesses appoint a licensed clearing and forwarding agent who holds the system access and lodges declarations on their behalf.
Regulated goods carry extra requirements. Food, plants, animals, chemicals, medicines, electronics and some second-hand goods need approval or inspection from bodies such as the Kenya Bureau of Standards, the Pharmacy and Poisons Board or the Kenya Plant Health Inspectorate Service. Find out before ordering, not after the container lands.
Choose the agent as carefully as a supplier. Ask for references, confirm the licence, and agree who pays storage and demurrage if documents are late. The cheapest quote often becomes expensive when charges accrue while paperwork is chased.
Check whether the product needs a pre-export or pre-shipment verification. Many imported goods are subject to conformity assessment before shipment, and arriving without the required certificate can lead to rejection at the port. Ask the supplier to arrange it and confirm it appears on the shipping documents.
Every product is classified under the Harmonised System, and the heading determines the duty rate under the EAC Common External Tariff. Classification disputes are common, particularly for machines, kits and goods that combine materials, so keep technical descriptions and catalogues for each new product.
Customs value is generally the transaction value, meaning the price paid or payable, adjusted for items such as freight and insurance up to the point of entry. Under-declaring value is treated as an offence, and KRA compares declarations with databases of comparable prices.
Where classification is uncertain, ask for an advance ruling or seek a written opinion from KRA Customs, and keep it on file. A documented position is far stronger in a later dispute than an informal chat with an officer.
Related-party sales need extra care. Where the buyer and seller are linked companies, KRA examines whether the price was influenced by the relationship, and you may need to justify the value with comparable transactions. Keep your transfer pricing documentation aligned with what you declare to customs.
On imports you pay import duty at the rate for the tariff heading, VAT at the applicable rate on the duty-inclusive value, and other levies such as the Import Declaration Fee and the Railway Development Levy where they apply. Excise duty applies to certain products. The total landed cost can differ a lot from the supplier's invoice.
Import VAT is recoverable as input tax if you are VAT-registered and the goods are used for taxable supplies. Keep the customs entry and payment receipt, because the VAT claim depends on them being in your business name and PIN.
Special regimes can change the cash cost, for example Export Processing Zones, Special Economic Zones and duty remission schemes for approved manufacturers. They carry conditions and reporting, so engage your adviser before relying on them.
For exports of goods you lodge an export entry, attach the commercial invoice, packing list and any permits, and present the goods for inspection or sealing where required. Exit is confirmed through the customs system, which provides the proof that supports zero-rating for VAT.
Exports of services, such as software development or consulting delivered to clients abroad, are treated differently from goods. Whether a service qualifies for zero-rating depends on where it is consumed and on the rules in the VAT Act, so confirm with KRA before invoicing without VAT.
Payment for exports should come through a bank so that there is a record. Foreign-currency proceeds can usually be held in a foreign-currency account or converted, depending on your bank's terms, and your accountant should record the exchange rate used.
Fresh produce and flowers follow their own regimes, with phytosanitary certificates, cold-chain requirements and buyer-specific standards. For perishable exports, the time between packing and clearance is the main risk, so agree cut-off times with your forwarder and the airline or shipping line.
Create one file per shipment. Put the purchase order, proforma, supplier invoice, packing list, transport document, customs entry, payment receipts and delivery proof in it. When a query arrives months later, you will thank yourself for not searching across three mailboxes.
Reconcile each shipment: quantities ordered, shipped and received, value declared to customs, value booked in your ledger. Differences point to damage, shortages, under-declaration or accounting errors, and each has a different fix.
Retain these records for the period tax law requires, which is five years for tax purposes. Customs audits can reach back and KRA can raise post-clearance assessments if it later disputes classification or value.
Scan the original documents the day they arrive and name files with the shipment number, document type and date. Folders that sort alphabetically into a timeline allow anyone to find the bill of lading for shipment 23 without asking the person who handled it.
4invoices.net can produce the PDF commercial invoice for an export sale and archive it with the others. It does not generate customs documents, link them into a document chain or submit anything to KRA.
4softerp.net keeps financial records for one or more companies, helping you track landed costs and supplier invoices alongside other bookkeeping. It does not contain an HS code library or duty rates, so tariff data must come from KRA and your agent.
4notify.net sends SMS or e-mail from your account, handy for telling a buyer that a consignment has left. Use it for communication only; shipment tracking remains with your carrier.
Export documents, logistics records and customer communications are managed in separate systems, causing delays at the port.
Keep the commercial invoice, packing list and bill of lading together in your own filing; 4invoices.net can produce the PDF commercial invoice and archive it. 4b2b does not generate customs documents or link them into a document chain.
Import duty calculations vary by HS code, and errors in classification generate costly corrections.
Classify goods with the current KRA customs tariff and confirm duties and VAT with your customs agent. 4b2b does not include an HS code library or duty rates.
Landed cost is only known after the container arrives, so selling prices were set too low.
Ask your agent for a duty and levy estimate before you order and record actual costs in your books. 4b2b does not calculate landed cost.
Legally you may clear your own goods if registered on the customs system, but most businesses use a licensed clearing and forwarding agent who knows the declaration process, valuation and port procedures. Confirm the agent's licence, agree fees and storage responsibilities in writing, and keep copies of every entry lodged in your name.
Typically import duty at the rate for the tariff heading, VAT on the duty-inclusive value, and levies such as the Import Declaration Fee and Railway Development Levy where they apply. Excise may also apply to some goods. Ask your agent for a written estimate before ordering so that your price reflects the landed cost.
If you are VAT-registered and the goods are used to make taxable supplies, import VAT is generally recoverable as input tax. You need the customs entry and payment evidence in your business name and PIN. Consult your adviser for restricted categories, where input tax claims are limited. Claim in the period the entry is dated, and keep the receipt for five years.
Not always. Goods are zero-rated on proof of exit, while services depend on where they are consumed and on the VAT Act conditions. Do not remove VAT from an invoice for a foreign client until you have confirmed the treatment with KRA or your tax adviser and documented the reasoning. Document your reasoning on file in case the treatment is questioned later.
No. 4invoices.net produces PDF invoices and an archive, and it does not generate customs documents or connect to KRA's customs system. Your clearing agent lodges entries. You can attach the archived commercial invoice to the shipment file and send status messages to buyers from 4notify.net. Keep the entry number on the invoice file so the two documents can be matched later.
This page is informational. Confirm requirements with the competent authority; 4b2b tools cover general invoicing and records only.
