Customs Valuation Kenya: The Six Methods KRA Uses

Updated 28 October 2026

Import duty in Kenya is mostly charged as a percentage of the customs value of the goods, so customs valuation in Kenya matters as much as the duty rate. Kenya applies the East African Community’s valuation rules, which follow the World Trade Organization Agreement on Customs Valuation. They set six methods, used strictly in order. This guide explains each method, when KRA moves from one to the next, and what importers can do to avoid disputes.

Updated October 2026.

Sources: East African Community Customs Management Act, 2004 (EACCMA), section 122 and the Fourth Schedule, which sets the valuation methods, and the WTO Agreement on Implementation of Article VII of GATT 1994. Checked on 27 October 2026. General information; complex valuations need a licensed customs agent or tax adviser.

What “customs value” includes

Kenya values imports on a CIF basis: cost, insurance and freight up to the port or place of entry. That means the price you paid for the goods plus the cost of transport and insurance to Kenya. Duty, and then VAT and other taxes, are calculated on top of that value.

The six methods, in order

Customs must try method 1 first and can only move to the next one if the one before cannot be used. The one flexibility is that the importer can ask for method 5 to be applied before method 4.

Method 1: transaction value

The price actually paid or payable for the goods when sold for export to Kenya, adjusted for certain costs. This is used for the large majority of imports. Adjustments add items that the buyer pays but that are not in the invoice price, such as commissions (other than buying commissions), packing costs, royalties and licence fees related to the goods, the value of materials or tools the buyer supplied to the seller, and the proceeds of any later resale that go back to the seller. Freight and insurance to Kenya are added under the CIF rule.

Transaction value can be rejected if, for example, the buyer and seller are related and the relationship influenced the price, if there are restrictions on what the buyer can do with the goods, or if the sale depends on conditions whose value cannot be worked out. Customs may also reject it if it has reasonable doubt about the truth or accuracy of the declared value and the importer cannot clear that doubt.

Method 2: transaction value of identical goods

If method 1 fails, customs uses the accepted transaction value of identical goods (same in all respects, including physical characteristics, quality and reputation) sold for export to Kenya at or about the same time.

Method 3: transaction value of similar goods

Next, customs uses the value of similar goods: not identical, but with like characteristics and components, able to perform the same functions and commercially interchangeable, exported at or about the same time.

Method 4: deductive value

Customs starts from the price at which the goods (or identical or similar goods) are sold in Kenya to unrelated buyers, then deducts commissions or profit and general expenses, transport and insurance within Kenya, and duties and taxes paid in Kenya.

Method 5: computed value

Customs builds the value up from the producer’s costs: materials and manufacturing, plus a usual amount for profit and general expenses, plus transport and insurance to Kenya. This needs the foreign producer’s cost data, so it is used rarely.

Method 6: fall-back method

If none of the above works, customs uses reasonable means consistent with the principles of the earlier methods, based on data available in Kenya. The rules bar certain bases, such as the selling price in Kenya of locally produced goods, arbitrary or fictitious values, or minimum values.

Why disputes happen

• Under-invoicing: if the declared price is far below what KRA sees for similar shipments, it may doubt the transaction value and ask for proof.
• Related parties: imports from a parent or sister company invite questions about whether the price is at arm’s length.
• Missing additions: royalties, buyer-supplied tooling or commissions not added to the price.
• Vehicles: for used cars, KRA works from a published current retail selling price (CRSP) list. See car import duty rates.

Documents that support your value

1. The commercial invoice and the sale contract or purchase order.
2. Proof of payment, such as bank transfer records.
3. The bill of lading or airway bill, with the freight invoice.
4. The insurance certificate.
5. Any royalty, licence or agency agreements linked to the goods.
6. Correspondence with the supplier on price and discounts.

Keep these together for each shipment. Under the EACCMA, the importer carries the burden of explaining the declared value if customs raises doubts.

If you disagree with KRA’s valuation

Ask for the reasons in writing and provide the supporting documents above. If you still disagree, the EACCMA provides for an application for review by the Commissioner, and after that an appeal to the Tax Appeals Tribunal. Your customs agent can handle the process and timelines.

Related

Storing goods before paying duty? Read how bonded warehouses work in Kenya. For the import declaration step, see the import declaration form (IDF).

Customs valuation Kenya: frequently asked questions

How does KRA value imported goods?

Using six methods under the EACCMA Fourth Schedule, starting with transaction value: the price actually paid or payable, adjusted and taken on a CIF basis.

What are the six customs valuation methods?

Transaction value; identical goods; similar goods; deductive value; computed value; and a fall-back method.

Can KRA reject my invoice value?

Yes, if conditions for transaction value are not met or customs has reasonable doubt about the declared value that the importer cannot clear.

Is freight included in customs value?

Yes. Kenya uses a CIF basis, so freight and insurance to Kenya are included.

Related guide: Simplified Trade Regime 2026: Easy EAC Rules Under $2,000

Related: KRA customs duty rates by HS code.