KRA Collects KSh90.05B in September as Import Values Jump 25.6%

The result matters because customs duties and taxes on imported goods are one source of government revenue, while import costs feed into the prices paid by manufacturers, retailers and households. The figures show that collections exceeded the target, but they do not by themselves reveal whether the rise in import value came from higher prices, larger quantities or a change in the mix of goods entering Kenya.

Non-oil goods led the increase

KRA said non-oil customs revenue reached KSh57.199B against a target of KSh55.422B, exceeding the goal by about KSh1.78B. The authority attributed the increase to a 25.6% rise in the overall value of imports, with bulk cargo value growing by 49.2%.

The categories named by KRA included fertilisers, iron and steel, palm oil and rice. These goods serve different parts of the economy: fertilisers support farming, steel is used in construction and manufacturing, while palm oil and rice feed into food supply chains. Higher imports can reflect stronger demand, changes in world prices or businesses bringing in supplies ahead of future sales. The figures supplied by KRA do not separate those effects.

KRA also reported that imported motor vehicles increased by 8.1% and containerised cargo, measured in twenty-foot equivalent units, rose by 8.2%. These are measures of the number of vehicles and the handling capacity represented by containers, not a direct count of every item imported or the value of each shipment.

Import values rose faster than collections

The 25.6% increase in import value was much larger than the 5.8% annual rise in customs revenue. That gap is worth watching, but it should not be read as proof that revenue collection weakened. Customs revenue depends on the types of goods imported, their customs values, the rates that apply, exemptions and other rules, as well as how effectively declarations are assessed and payments collected.

A higher import bill can therefore coexist with a smaller rise in tax receipts. For example, the value of shipments can increase because international prices rise, while the tax due varies across categories. The available figures do not provide enough detail to calculate how much of the September revenue change came from prices, volumes, tax rates or compliance.

For Kenyan businesses, the composition of imports matters as much as the headline total. Manufacturers and traders rely on imported inputs, equipment and finished products, so shifts in import costs can affect working capital and prices. The customs figures do not show whether businesses passed higher costs to consumers or absorbed them in their margins.

KRA points to customs reforms

KRA said it is using technology and changes to customs procedures to facilitate legitimate trade, reduce revenue leakage and improve compliance. The measures it identified include Advance Cargo Declaration and wider use of data to assess cargo risks, process declarations and identify consignments that require closer checks.

Advance Cargo Declaration is intended to provide cargo information before goods arrive, giving customs officers more time to assess risk. Data-led checks can help focus inspections on shipments that need attention, although the September revenue figures do not quantify how much each reform contributed to the result.

For importers, clearance speed and predictability can affect storage costs, delivery schedules and the amount of cash tied up in goods awaiting release. KRA says its reforms are intended to make the process more efficient and transparent, but the published collection figures do not measure waiting times or show whether individual traders have experienced faster clearance.

The figures need more detail

The September result shows KRA exceeded its target and collected more customs revenue than a year earlier. It also records faster growth in import values and bulk cargo, but the figures do not establish the causes of those increases or how they were distributed across sectors.

A fuller assessment would require detailed data on customs values, quantities, applicable duty rates, exemptions and the time taken to clear goods. Comparisons across several months would also help distinguish a sustained change from a single month's movement. Until those details are available, the strongest supported conclusion is that September customs revenue beat its target while import values and cargo indicators rose.

The increase also sits within Kenya's wider external-trade position. Mwenendo's recent report on foreign-exchange reserves explains the buffer available for the country's external payments, although reserve levels and customs revenue measure different things.