Crackdown on Counterfeit Goods Hits Kenya Revenue Authority's Income

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Nyakundi Report

Newsroom 1 min read

Primary source Kenyan Digest archive

This archive report was first published on 20 July 2019.

As of the end of May, the Kenya Revenue Authority (KRA) had collected Sh97 billion in import duty for the first 11 months of the 2018/19 fiscal year, falling short of its June target of Sh135 billion.

This represents a 71.8% achievement of the target, compared to 87% in the same period in 2018.

Imports from January to May stood at Sh726 billion, a decline from Sh756 billion in the same period in 2018.

China, Kenya's leading source of imports, has seen its import bill decline due to the government's crackdown on tax cheats, which has disproportionately affected small traders importing manufactured goods from the Asian country.

The government has also intensified raids to rid local manufacturers of unfair competition from illicit trade.

According to the National Treasury, more than Sh8 billion worth of counterfeit goods have been seized and action taken against the culprits.

To protect local industries critical to President Uhuru Kenyatta's Big Four Agenda, the Treasury has slapped punitive tariffs on imported commodities such as steel, plastics, paper, wood, and textile.

These products now attract import tariffs of between 25 and 35% (in the case of textile), rather than the common external tariff of 10%.

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