Kenya adjusts import duties on phones, rice, diapers and other goods

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Kenya has introduced a series of revised import duty measures that will affect the cost of several consumer and industrial goods, including mobile phones, rice, baby diapers, second-hand clothing, and lithium batteries.

The changes, approved under the East African Community (EAC) Common External Tariff (CET) framework, were published in the latest EAC Gazette and will remain in effect for one year unless extended.

Mobile Phones to Attract 25 Percent Import Duty

One of the most significant changes is the introduction of a 25 percent import duty on mobile phones, replacing the previous zero-duty rate.

The move is expected to increase the cost of importing smartphones into Kenya, although the final retail prices will depend on factors such as shipping costs, distributor pricing, and retailer margins.

New Duty Rates for Baby Diapers and Rice

The new measures also affect baby diapers, with Kenya joining Uganda and Tanzania in increasing the import duty from 25 percent to 35 percent for one year.

The adjustment could lead to higher prices for imported diaper brands available in the local market.

Meanwhile, rice importers received some relief after Kenya reduced the applicable duty from the standard CET rate of 75 percent—or USD345 (about KSh44,600) per metric tonne, whichever is higher—to 35 percent or USD200 (approximately KSh25,850) per metric tonne for the next year.

The reduction is expected to ease import costs and help improve rice supply in the domestic market.

Relief for Mitumba Traders and Clean Energy Sector

Kenya also retained its existing import duty regime on second-hand clothing, commonly known as mitumba, maintaining a rate of 35 percent or USD0.20 per kilogram, whichever is higher.

This means the country will not adopt the higher regional benchmark of USD0.40 per kilogram that had been proposed under the Common External Tariff.

In a move aimed at supporting clean energy adoption, the EAC also approved Kenya’s request to apply a zero percent import duty on lithium batteries for one year instead of the standard 25 percent rate.

The measure is expected to reduce the cost of batteries used in solar energy systems, power storage solutions, and backup electricity infrastructure.

Support for Local Manufacturing and Agriculture

The gazette further grants Kenya a one-year duty remission on raw materials used in the manufacture of animal feeds.

The government expects the measure to lower production costs for local feed manufacturers while supporting the livestock sector through more affordable feed production.

Part of EAC Trade Framework

The revised duty measures were approved under provisions of the EAC Common External Tariff, which allows Partner States to temporarily adjust standard regional import duties after receiving approval from the EAC Council of Ministers.

Such adjustments are typically introduced to protect local industries, respond to changing economic conditions, encourage investment, or address supply shortages.

The latest gazette also highlights different policy approaches among EAC member states. While Kenya adopted a 25 percent import duty on mobile phones, Uganda opted for a lower 10 percent rate, while Rwanda retained a zero percent duty on electric and hybrid vehicles as well as electric motorcycles for another year.

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