The higher prices follow a decision by the East African Community (EAC) to allow Kenya to retain higher import duty rates on selected consumer and industrial goods for another year.
The customs measures took effect on July 1, after the EAC Secretariat approved Kenya’s request to continue charging import duties above the Common External Tariff (CET) on selected products.
The decision affects a wide range of imports, including baby diapers, mobile phones, liquefied petroleum gas (LPG) cylinders and stoves, lubricants, wood products, optical fibre cables, iron and steel products, furniture and motor vehicles.
The EAC said the higher tariffs are intended to protect local manufacturers while boosting government revenue.
“The EAC Council approved Kenya’s request to continue charging higher import duties on selected goods, including mobile phones, optical fibre cables, iron and steel products, gas cylinders, LPG stoves and other manufactured items,” the notice states.
The changes underscore Kenya’s growing reliance on tariff protection to support domestic industry while raising additional tax revenue, even as consumers continue grappling with the high cost of living.
For households, the impact is expected to be most visible on everyday items.
Imported premium diaper brands, which remain popular despite expanding local production, are likely to become more expensive as importers pass on higher costs to retailers and consumers.
The mobile phone market is also expected to feel the impact. Kenya imports millions of smartphones annually, and higher duties are likely to push up prices, particularly for premium models.
Although the government has promoted local smartphone assembly, most devices sold locally are still fully imported.
The EAC also allowed Kenya to continue charging higher duties on imported LPG cylinders and cooking stoves.
While the tariff applies to the equipment rather than the cooking gas itself, distributors warn it could discourage more households from switching to cleaner cooking energy by increasing the upfront cost of cylinders and cookers.
The move comes months after Parliament rejected the government’s proposal to introduce an open tender system for cooking gas imports following complaints that dealers had failed to lower prices despite tax incentives.
MPs also rejected regulations that would have allowed LPG to be sold in smaller token-based quantities.
“The committee recommends that the House annuls in entirety the Petroleum (Operation of Common Petroleum Facilities) Regulations, 2025,” the National Assembly Committee on Delegated Legislation said in its report.
Imported furniture will also remain subject to higher duties to encourage local manufacturing, although consumers seeking imported brands are expected to pay more.
Motorists are also unlikely to escape the impact, with higher duties maintained on imported passenger cars, buses and commercial vehicles, adding to costs already driven by freight charges, exchange rate movements and domestic taxes.
Construction firms and manufacturers could face higher operating costs after the EAC retained elevated tariffs on imported iron and steel products, optical fibre cables, lubricants and other industrial inputs.
The Gazette also introduces a 10 per cent import duty on packaged software supplied through physical media such as CDs, DVDs and USB drives, including operating systems, antivirus software and office suites.
Although physical software has largely been replaced by online downloads, the move marks Kenya’s first tariff adjustment following the expiry of the World Trade Organisation’s moratorium on customs duties for digitally delivered products in March.
According to the Gazette, the duty will make such imports more expensive for businesses, even as other EAC partner states continue applying a zero per cent rate.
PricewaterhouseCoopers senior manager for customs and international trade, Corazon Ongoro, said one notable amendment is that goods imported exclusively for Public-Private Partnership (PPP) infrastructure projects will now attract zero import duty.
“To qualify, the project must be approved by the Cabinet Secretary for the National Treasury based on a recommendation from the Cabinet Secretary in charge of the project,” she said.
The Council also approved several incentives to lower production costs for manufacturers, including one-year duty remissions on industrial raw materials used in making garments, footwear, pharmaceuticals, roofing products, leather goods and telecommunications devices.
Kenya also retained duty-free access for components used to assemble smart communication devices, supporting plans to expand local electronics manufacturing.
If manufacturers pass on the savings, locally assembled products could become more competitive against imported alternatives.
RELIEFS
The Council approved lower duty rates on selected products, including lithium-ion batteries, rice, second-hand clothing and imported dates during the January-February 2027 period.
Lower battery duties are expected to support Kenya’s growing electric mobility and renewable energy sectors.
Reduced import duties on rice may also help moderate food prices if traders pass the savings to consumers.
The Gazette further grants duty-free treatment for goods imported exclusively for approved Public-Private Partnership (PPP) infrastructure projects, provided they receive approval from the National Treasury and the relevant implementing ministry.
The measure complements VAT exemptions introduced under the Finance Act, 2026 and is expected to reduce costs for strategic infrastructure investments.
Other amendments include extending customs duty exemptions to goods imported for official use by Kenya’s National Intelligence Service, allowing airlines to import specialised boarding pass paper duty-free and simplifying procedures for approving humanitarian relief imports during emergencies.
Across the region, other EAC partner states also secured country-specific tariff adjustments.
