Kenyan legislation

Miscellaneous Fees and Levies Act

Edition: 2026-07-01 · In force

Browse sections

Part I – PRELIMINARY

1. Short title

This Act may be cited as the Miscellaneous Fees and Levies Act.

2. Interpretation

(1)In this Act, unless the context otherwise requires—"Authority” means Kenya Revenue Authority established by the Kenya Revenue Authority Act (Cap. 469);"authorised officer” means any officer appointed under section 3;"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for finance;"Commissioner" means the Commissioner-General appointed under the Kenya Revenue Authority Act (Cap. 469) or any other Commissioner to whom powers or functions have been delegated under that Act;"concessional loan" means a loan with at least twenty-five percent grant element;"customs value" for the purposes of ascertaining the value for charging, means—(a)the import declaration fee or railway development levy, the import value of goods as appraised by Customs for use as the basis for assessing the amount of import duty; or(b)the export levy, the export value of the goods;"East African Community Partner States" means the Republics of Burundi, Rwanda, Uganda and the United Republic of Tanzania;"export" means to take or cause to be taken out of Kenya to a foreign country to an export processing zone or special economic zone;"export processing zone" means an export processing zone designated as such under the Export Processing Zones Act (Cap. 517);"importer" in relation to goods, means a person who owns the goods, or any other person who is, for the time being, in possession of or beneficially interested in the goods at the time of importation;"official aid funded project" means a project funded by means of a grant or concession loan in accordance with an agreement between the Government of Kenya and any foreign government, agency, institution, foundation, organization or any other aid agency;"person" means an individual, company, partnership, association of persons, trust, estate, the Government, a foreign government or a political subdivision of the Government or foreign government; and"Special Economic Zone" has the meaning assigned to it under the Special Economic Zones Act (Cap. 517A).

(2)For the purpose of this Act, goods shall be classified by reference to the nomenclature set out in Annex 1 to the Protocol on the Establishment of the East African Community Customs Union and in interpreting the Annex; the general rules of interpretation set out therein shall apply.[Act No. 10 of 2018, s. 49, Act No. 23 of 2019, s. 36.]

Part II – ADMINISTRATION

3. Functions and powers of the Commissioner and other officers

(1)The Commissioner shall unless otherwise provided for be responsible for the control and collection of, and accounting for, duties, fees and levies paid under this Act and shall, subject to the direction and control of the Cabinet Secretary, have the superintendence of all matters relating thereto.

(2)The Commissioner shall appoint such officers as may be necessary for the administration of this Act.

(3)The Commissioner may authorize any officer appointed under this section to perform any of the functions of the Commissioner under this Act or the regulations, other than the functions under subsection (2).

(4)Every authorised officer appointed under this section shall enforce, and ensure due compliance with, the provisions of this Act and the regulations, and shall make all due inquiries in relation thereto.

(5)Every authorised officer appointed under this section shall, on demand, produce such documents establishing his or her identity as may be approved by the Commissioner.

(6)Every authorised officer shall, in carrying out the provisions of this Act, regard and deal with all documents and information relating to fees and charges and all confidential instructions in respect of the administration of this Act which may come into his possession or to his knowledge in the course of his duties as confidential.

(7)Any decision made and any notice or communication issued or signed by any authorised officer may be withdrawn or amended by the Commissioner or by the authorised officer concerned, and shall, until it has been so withdrawn, be deemed to have been made, issued or signed by the Commissioner.

[Act No. 6 of 2026, s. 2.]

4. Authorised officers to have powers of police officers

For the purposes of carrying out the provisions of this Act, every authorised officer shall, in the performance of his or her duties, have all the powers, rights, privileges and protection of a police officer.

Part III – IMPOSITION OF LEVIES AND FEES

5. Imposition of export levy

(1)There shall be paid a levy to be known as the export levy, on all goods specified in the First Schedule.

(2)The levy shall, where more than one rate is specified, be the higher of the ad valorem or the specific rate specified in the First Schedule and shall be paid by the exporter at the time of entering the goods for export.

(3)The ad valorem rate shall be based on the custom value of the goods.

(4)Deleted by Act No. 4 of 2023, s. 69.[Act No. 4 of 2023, s. 69.]

6. Exemption

The provisions of section 5 shall not apply to goods exported to the East African Community Partner States.

7. Import declaration fee

(1)There shall be paid a fee to be known as the import declaration fee, on all goods imported into the country for home use.

(2)The fee shall be at the rate of two point-five per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods for home use.

(2A)Deleted by Act No. 4 of 2023, s. 68 (b).

(3)Despite subsection (1)—

(a)import declaration fee shall not be charged on the goods specified in Part A of the Second Schedule when imported or purchased before clearance through customs;

(b)deleted by Act No. 4 of 2023, s. 68 (c).

(4)An importer of goods other than goods specified in Part A of the Second Schedule shall complete the prescribed import declaration form.

(5)An importer shall present a copy of the import declaration form completed under subsection (4) to the Commissioner at the time of entering the goods for home use.

(6)Out of the fee collected under subsection (2), twenty per cent shall be paid into a Fund established and managed in accordance with the Public Finance Management Act (Cap. 412A)

(7)Ten percent of monies in the Fund under subsection (6) shall be used for the payment of kenya's contributions to the African Union and any other international organisation to which Kenya has a financial obligation, while ten percent shall be used for revenue enforcement initiatives.[Act No. 23 of 2019, s. 37, Act No. 2 of 2020, Sch., Act No. 8 of 2020, s. 20, Act No. 22 of 2022, s. 46, Act No. 4 of 2023, s. 68., Act No. 9 of 2025, s. 62.]

7A. Export and investment promotion levy

(1)There shall be paid a levy to be known as the export and investment promotion levy, on all goods specified in the Third Schedule, imported into the country for home use.

(2)The levy shall be at the rates specified in the Third Schedule and shall be paid by the importer of such goods at the time of entering the goods into the country for home use.

(3)The purpose of the levy shall be to provide funds to boost manufacturing, increase exports, create jobs, save on foreign exchange and promote investments.

(4)The export and investment promotion levy shall not be charged on goods originating from East African Community Partner States that meet the East African Community Rules of Origin.

(5)The funds collected from the levy shall be paid into a fund established and managed in accordance with the Public Finance Management Act (Cap. 412A).[Act No. 4 of 2023, s. 70.]

8. Railway development levy

(1)There shall be paid a levy to be known as the railway development levy, on all goods imported into the country for home use.

(2)The levy shall be at the rate of two per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods into the country for home use.

(2A) Deleted by Act No. 4 of 2023, s. 71 (b).

(3)The purpose of the levy shall be to provide funds for—

(a)financing the development and construction of railway transport infrastructure;

(b)the safety and economic regulation of railway infrastructure; and

(c)on the approval of the Cabinet Secretary and the Cabinet Secretary responsible for matters relating to railway transport, rehabilitation of railway transport infrastructure.

(4)There is established a fund known as the Railway Development Levy Fund, into which the proceeds of the levy shall be paid, and which shall vest in the Board established under subsection (4A).

(4A)There is established a board known as the Railway Development Levy Fund Board which is a body corporate with perpetual succession and a common seal and shall, in its corporate name, be capable of—

(a)suing and being sued;

(b)taking, purchasing, charging and disposing of movable and immovable property;

(c)entering into contracts; and

(d)doing or performing all other things necessary for the proper discharge of its functions under this Act which may be lawfully done or performed by a body corporate.

(4B)The functions of the Board shall be to—

(a)formulate the strategic direction of the Fund including strategic plans, investment plans and policies;

(b)set up administrative, governance and financial management structures of the Fund;

(c)oversee the administration and management of the Fund;

(d)coordinate the optimal utilization of the Fund in implementing programmes relating to the purpose for which the Fund is established;

(e)supervise the performance of the Secretary to the Board, officers and staff of the Fund;

(f)approve and review the annual work programme and budget of the Fund;

(g)approve, with the concurrence of the Cabinet Secretary, the investment policy, investment plan and risk threshold of the Fund;

(h)invest the funds of the Board not immediately required for the purposes of this Act in such a manner as it may determine; and

(i)perform any other function necessary to promote the objects and purpose of the Fund.

(4C)The Railway Development Levy Fund Board shall consist of—

(a)a chairperson appointed by the President from among the members appointed under paragraph (e);

(b)the Principal Secretary responsible for matters relating to railway transport;

(c)the Principal Secretary responsible for matters relating to finance;

(d)the Attorney-General;

(e)five other members, who shall not be public officers, appointed by the Cabinet Secretary responsible for matters relating to railway transport, with expertise in infrastructure finance, law, investment or public-private partnerships; and

(f)the Secretary to the Railway Development Levy Fund Board who shall be an ex-officio member without any right to vote at the meetings of the Board.

(4D)A person appointed as a member of the Board under this Act, other than an ex-officio member, shall serve for a term of three years and be shall be eligible for reappointment for a further and final term of three years.

(4E)A member of the Board, other than an ex-officio member, may—

(a)at any time resign from office by notice in writing—

(i)in the case of the chairperson, to the President; or

(ii)in the case of a member, to the chairperson;

(b)be removed from office if the member—

(i)has been absent from three consecutive meetings of the Board without the permission of the chairperson;

(ii)is adjudged bankrupt or enters into a composition scheme or arrangement with his or her creditors;

(iii)is convicted of an offence involving dishonesty or fraud;

(iv)is convicted of a criminal offence and sentenced to imprisonment for a term exceeding six months or to a fine exceeding ten thousand shillings;

(v)is incapacitated by prolonged physical or mental illness or is deemed otherwise unfit to discharge his or her duties as a member of the Board.

(4F)The Cabinet Secretary shall make regulations to provide for—

(a)the recruitment and appointment of the Secretary to the Railway Development Levy Fund Board and other officers and staff of the Fund;

(b)the management and administration of the Railway Development Levy Fund;

(c)the usage and apportionment of monies from the Railway Development Levy Fund for the purposes for which the Fund is established; and

(d)the conduct of affairs and regulation of the business of the Board.

(4G)The regulations under subsection (4F) shall be made under and in accordance with section 24 of the Public Finance Management Act.

(4H)For the purposes of subsection (4F)(c), a proportion of the Railway Development Levy Fund not exceeding ninety per cent of the Fund may be used to secure additional funds for the purposes provided under subsection (3)(a).

(4I)The administrative costs of the Fund shall not exceed zero point five per cent of the Fund.

(4J)All monies accruing to the Fund shall be paid into the following accounts established by the Board with the approval of the Cabinet Secretary—

(a)a Fund account;

(b)a general account, which shall be applied towards the ordinary purposes of the Fund; and

(c)a special account, into which shall be paid and from which shall be disbursed the additional funds secured pursuant to subsection (4H).

(4K)All transactions relating to the special account established pursuant to subsection (4J)(c) shall be recorded, reported on and audited in accordance with the Public Finance Management Act (Cap. 412A), the Public Audit Act (Cap. 412B) and any other relevant written law.

(4L)The Board shall submit to the Cabinet Secretary and the Cabinet Secretary responsible for matters relating to railway transport, at least once every three months, and annually to the National Assembly, reports detailing the inflows, outflows, and balances of the accounts established pursuant to subsection (4J).

(5)The fund referred to in subsection (4) shall be established, managed, administered or wound up in accordance with section 24 of the Public Finance Management Act (Cap. 412A) and the regulations made under that Act.

(6)No levy shall be charged in respect of the goods specified in Part B of the Second Schedule when imported or purchased before clearance through customs.[Act No. 23 of 2019, s. 38, Act No. 2 of 2020, Sch, Act No. 22 of 2022, s. 47, Act No. 4 of 2023, s. 71, Act No. 12 of 2024, s. 28, Act No. 6 of 2026, s. 3.]

8A. Anti-adulteration levy

(1)There shall be paid a levy to be known as the anti-adulteration levy, on all illuminating kerosene imported into the country for home use.

(2)The levy shall be at the rate of eighteen shillings per litre of the customs value of the illuminating kerosene and shall be paid by the importer at the time of entering the illuminating kerosene into the country.

(3)The Commissioner shall refund the levy on the written application of an importer where the Commissioner is satisfied that the levy was paid in respect of illuminating kerosene that has subsequently been used by a licensed or registered manufacturer to manufacture paint, resin or shoe polish.

(4)The levy shall not apply to a licenced or registered manufacturer of paint, resin or shoe polish.[Act No. 10 of 2018, s. 50, Act No. 23 of 2019, s. 39, Act No. 8 of 2021, s. 49.]

8B. Processing fees on duty free motor vehicles

(1)There shall be a fee to be known as the processing fee on all motor vehicles excluding motorcycles imported or purchased duty free prior to clearance through customs under the Fifth Schedule to the East African Community Customs Management Act, 2004.

(2)The fee shall be Kenya shillings ten thousand applicable to all motor vehicles excluding motorcycles imported or purchased duty free specified in paragraphs 4, 5, 6, 7, 8, 9, 10 and 11 of Part A, and paragraph 3 and 5 of Part B under the Fifth Schedule to the East African Community Customs Management Act, 2004.[Act No. 2 of 2020, Sch.]

9. Application of East African Community Customs Management Act, 2004

The provisions of the East African Community Customs Management Act, 2004, relating to the determination of value of imported goods, collection and enforcement of the payment of duty shall apply for the purposes of assessment, collection and enforcement of the payment of the fees and levies imposed under Part III.(Act No. 19 of 2026, s. 51)

9A. Duty on goods for home use from an export processing zone enterprise

Notwithstanding the import duties payable under section 110 of the East African Community Customs Management Act, 2004, an additional duty at a rate of two point five per cent of the customs value shall be payable in respect of goods entered for home use from an export processing zones enterprise.Provided that this section shall not apply to currency notes and coins imported by the Central Bank of Kenya.[Act No. 8 of 2020, s. 21, Act No. 22 of 2022, s. 48.]

9B. Application of Tax Procedures Act (Cap. 469B).

The Tax Procedures Act (Cap. 469B) shall apply for the purposes of—

(a)an application for refunds, ascertainment and repayment of fees and levies overpaid or paid in error under this Act; or

(b)the determination by the Commissioner of penalties and interests on fees and levies that remain unpaid.

[Act No. 8 of 2021, s. 50, Act No. 22 of 2022, s. 49, Act No. 9 of 2025, s. 63.]

10. Formalities may be carried out by information technology

(1)Subject to such conditions as the Commissioner shall prescribe, formalities or procedures under this Act may be carried out by use of information technology in the customs computerized system.

(2)The provisions of the East African Community Customs Management Act, 2004, relating to registration of users, access and use on the customs computerized system shall apply for the purposes of carrying out formalities and procedures under this Act.

Part IV – MISCELLANEOUS PROVISIONS

11. Offence

(1)A person who contravenes the provisions of this Act commits an offence.

(2)A person convicted of an offence under this Act, where no specific penalty is provided, shall be liable to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding two years, or to both.

12. Regulations

The Cabinet Secretary may make regulations for the better carrying out of the provisions of this Act.

Case law citing this Act

Source: Kenya Law · Imported 4 October 2026