What’s Changing?

The blanket exemption for all Chapter 88 goods is being revoked. Exemptions now apply only to:

• 8802.30.00 – Aircraft between 2,000–15,000 kg
• 8802.40.00 – Aircraft over 15,000 kg
• Only covers parts, not all goods under Chapter 88

This means previously exempt items like engines and general spares may now attract levies, even for approved operators.

What It Means for Importers

• Increased maintenance and operations costs
• Need to reclassify import documentation with accuracy
• Possible impacts on pricing and service delivery

Refunds Now Fully Covered by TPA

Previously, refunds on overpaid or wrongly paid levies were governed by *Section 47* of the Tax Procedures Act (TPA). Now, **the full TPA** applies to refunds, interest, and penalties.

Why it matters:

• Standardisation of refund processes
• Greater clarity and reduced ambiguity
• Simplified processes for KRA refund handling

Railway Development Levy (RDL) & Import Declaration Fee (IDF)

Aircraft parts were previously exempt under Chapter 88. Going forward, only the specific tariff headings will be exempted. Other imports may now attract RDL and IDF.

Impact:

• New levy costs for aviation imports
• Revised budgets in supply chains
• Increased need for HS code accuracy to avoid disputes

Export & Investment Promotion Levy Cuts

Levy rates on certain metal and industrial products have been reduced from 17.5% to 5%, including:

• Semi‑finished iron or non‑alloy steel
• Hot‑rolled bars/rods
• Irregular coils and similar items

This supports manufacturers and exporters through improved competitiveness.

What You Need to Do

FAQs

1. Will I still get exemptions if I import aircraft parts as an approved operator?
   Only if classified under 8802.30.00 or 8802.40.00 and specific to parts.
2. What’s the benefit of applying the full TPA to refunds?
   Offers a fuller legal framework, clearer processes, and potentially faster resolutions.
3. How do I know if my product qualifies for the 5% levy?
   Check the HS code against the updated Third Schedule—consult customs brokers as needed.

Useful External Resources

• Kenya Revenue Authority – Customs & Tariffs :contentReference[oaicite:1]{index=1}
• National Treasury – 2025 Finance Bill Portal :contentReference[oaicite:2]{index=2}