KENTRADE proposes a 50 per cent reduction in export levy to boost Kenya’s trade competitiveness

BY SAMWEL RAMBAYA (PCO) 

The Kenya Trade Net work Agency (Ken Trade) has proposed a 50 per cent reduction in the $10 Unique Consignment Reference (UCR) fee per Import Declaration Form (IDF). T his is expected to lower export costs and enhance Kenya’s trade competitive ness.

KenTrade Chief Executive Officer David Ngarama revealed the draft National Electronic Single Window System (Fee Reduction and Exemption) Regulations, is being developed with the Ministry of National Treasury and Economic Planning.

Ngarama said the proposal, which also exempts users already covered un der existing administrative fee waivers, aims to make Kenyan exports more competitive and profitable, particularly for sectors like fresh produce, flowers, and avocados.

“This aligns with advocacy from the Shippers Council of Eastern Africa (SCEA) to address non-tariff barriers,” the CEO said.

The announcement, made during a consultative forum in Nairobi co-hosted with the Kenya International Freight and Forwarding Association (KIFWA), brought together Partner Government Agencies (PGAs) like the Kenya Bureau of Standards (KEDBS) E-Citizen, Kenya Ports Authority (KPA), the Federation of East African Freight Forwarders Associations (FEAFFA), Civil Aviation Authority, Anti Counterfeit Authority (ACA), National Agency for the Campaign Against Drug Abuse (NACADA) and Kenya Revenue Authority.

“It is our view that this proposal will address the concerns raised by stake holders, particularly, the Fresh Produce Association of Kenya (FPEAK), the Kenya Flower Council, and the Association of Avocado Exporters of Kenya on the impact of the USD 10 UCR fees on their competitive ness and profitability and will positively impact on the industry’s performance,” he said. 

“This is also in line with the broader government policy on the promotion of exports. Towards this end, I sincerely thank you for the cooperation as we implement the Regulations,” said Ngarama.

The draft Fee Reduction and Exemption Regulation will be available on Ken Trade website www.ken trade.go.ke. KIFWA national chairman Fredrick Oloo, expressed KIFWA’s support for Ken Trade’ proposal to slash the $10 Unique Consignment Reference (UCR) fee by 50 per cent per Import Declaration Form (IDF) while emphasizing the potential impact of the fee reduction on Kenya’s exporters.

“This proposal will ease the financial burden on our members and make Kenyan goods more competitive, especially in the global market for perishables like avocados and flowers,” he said.

He noted that the reduction aligns with KIFWA’s ongoing advocacy for streamlined cargo clearance and cost reduction.

Oloo also urged Parliament to expedite the legislative process for the proposal, echoing his earlier calls for the swift passage of the Kenya Customs and Freight Forwarding Management Bill, which aims to further professionalize the industry.

He reaffirmed KIFWA’s commitment to working with KenTrade and the Kenya Revenue Authority (KRA) to ensure the TFP’s advancements, such as faster permit processing and maritime integration, benefit all members.

The National Electronic Single Window System now enhanced as the National Trade Facilitation Platform (TFP), has had significant impacts on Kenya’s trade ecosystem including simplification of the simplification of 54 procedures for over 130 import and export commodities via a dedicated information for trade portal.

This reduces documentation requirements and time, making trade more accessible, especially for small and medium enterprises. The TFP supports over 20,500 users and 40 Partner Government Agencies (PGAs), processing around 4,000 permits daily, with over 70 per cent completed within 24 hours.

This rapid processing reduces delays, streamlining import and export procedures for traders.