Car dealers oppose KRA’s certificate of origin rule, term it costly and unnecessary
They want KRA to exempt them from the requirement, saying it only adds paperwork and costs without offering any extra value to the clearance process.
Car importers have come out strongly against a new directive by the Kenya Revenue Authority (KRA) requiring all imported goods to be accompanied by a certificate of origin, arguing that the rule is unnecessary and will lead to an annual cost burden of more than Sh2 billion.
Through their lobby group, the Car Importers Association of Kenya (CIAK), the dealers said vehicle importation already involves key documents that clearly show the source of the cars, including logbooks, export permits, and inspection certificates. They want KRA to exempt them from the requirement, saying it only adds paperwork and costs without offering any extra value to the clearance process.
“We are asking the authority to exclude car dealers from this rule since it will add to the cost, yet we already have such documents,” said CIAK national chairman Peter Otieno.
The association argued that the requirement would force every vehicle importer to pay Sh28,000 for the certificate, money that would end up with foreign entities issuing the documents. They said this additional cost would ultimately be transferred to local consumers.
“In 2024, between January and December, Kenya imported 72,486 units with each required to pay Sh28,000 for the CO if it is introduced, which would result to export of more than Sh2,029,608,000 which should not be spent while there are such documents to verify vehicle’s origin since no unit can be cleared in different border points without such documents,” CIAK said.
A certificate of origin shows where a product was made and includes details about the manufacturer, exporter, importer, and shipment. It is typically used in international trade to determine the origin of goods for customs and tariff purposes.
The rule was announced by KRA through a notice dated July 9, 2025, stating that all imports entering Kenya must have a certificate of origin starting July 1, 2025.
Car importers are now urging the tax agency to review the decision, insisting that the process of importing vehicles already includes strict verification and that adding a separate certificate will only increase the cost of doing business.
