The document is an updated version of the Miscellaneous Fees and Levies Act, 2016, incorporating the latest changes from the Finance Act 2025. The Act primarily governs the imposition of the Import Declaration Fee (IDF), Railway Development Levy (RDL), and various export levies designed to regulate trade and fund infrastructure.

Import Declaration Fee (IDF):

• Standard Rate: The IDF rate is maintained at 2.5% of the customs value of imported goods.

• Reduced Rates: A lower rate of 1.5% applies to raw materials and intermediate products imported by manufacturers, as well as inputs for the construction of houses under an affordable housing scheme.

• Exemptions: New exemptions have been introduced for goods imported for official use by the Defence Forces and the National Police Service. Additionally, equipment for the generation of solar and wind energy remains exempt to support green energy initiatives.

Railway Development Levy (RDL):

• Standard Rate: The RDL is set at 2% of the customs value of goods imported into the country for home use.

• Purpose: The funds collected are specifically earmarked for the development and maintenance of the standard gauge railway (SGR) infrastructure.

• Incentives: Similar to the IDF, a preferential RDL rate of 1.5% is applicable to manufacturers importing raw materials and for goods related to the affordable housing agenda.

Export Levies:

• Protection of Local Industry: The Act continues to impose export levies on specific raw materials (such as hides, skins, and waste/scrap metal) to encourage local value addition.

• New Levies: The Finance Act 2025 has introduced or adjusted levies on the exportation of certain agricultural products and mineral ores to ensure the country retains a higher share of the value chain.

• Rate Adjustments: The levy on the export of raw macadamia nuts has been reviewed to balance the interests of farmers and local processors.

Miscellaneous Fees:

• E-commerce and Small Consignments: The Act introduces a simplified fee structure for small-value consignments imported through courier services, aiming to streamline the clearance process for the growing e-commerce sector.

• Ad valorem Fees: Certain imported finished goods that compete directly with locally manufactured products are subject to additional "protectionist" fees ranging between 10% and 25%.

Exemptions and Remissions:

• Humanitarian Aid: Goods imported for use in emergency relief (drought, floods) are exempt from both IDF and RDL, subject to approval by the Cabinet Secretary for National Treasury.

• Diplomatic Immunity: Imports by diplomatic missions and international organizations (UN, AU) remain exempt in accordance with international treaties.

• Regional Trade: Goods originating from East African Community (EAC) Member States are generally exempt from these fees, provided they meet the Rules of Origin criteria.

Administration:

• Collection: The Kenya Revenue Authority (KRA) remains the primary agency responsible for the collection and enforcement of these fees and levies.

• Penalties: The Act prescribes strict penalties for the under-declaration of the value of goods or the misclassification of imports to evade fees, including fines up to 10% of the diverted value.