Importers, exporters and logistics firms are opposed to the Kenya Revenue Authority’s planned rollout of the Advance Cargo Declaration system, warning that the new requirement will disrupt supply chains.
The system, they say, will also increase the cost of doing business and delay movement of goods.
The tax authority is set to launch the digital platform on August 3, requiring all containerised cargo destined for Kenyan ports to be declared online before loading at the port of origin.
However, the Shippers Council of Eastern Africa (SCEA), which represents importers, exporters and logistics players, is calling for the implementation to be postponed until October, saying businesses are unprepared and critical operational concerns remain unresolved.
SCEA chief executive Agayo Ogambi said while the objective of enhancing customs risk management is commendable, the implementation timeline is impractical and risks disrupting trade.
“The objective of the ACD may be noble, but the way it is being implemented raises more questions than answers,” Ogambi said on Thursday.
He questioned why suppliers overseas are being burdened with additional compliance requirements and costs that were not part of existing commercial contracts, and which will end being passed on to consumers, increasing final commodity prices and ultimately the cost of living.
“Suppliers already have performance contracts and responsibilities with Kenyan importers. Varying these requirements at this stage is creating serious frustration and fears,” he said.
Under the new framework, exporters must apply for a 15-digit ACD reference code through the KRA online portal before cargo is loaded for shipment.
To obtain the code, exporters are required to upload a draft Bill of Lading, commercial invoice, freight invoice and export declaration, after which the ACD reference must be endorsed on the Bill of Lading before cargo is shipped to Kenya.
However, SCEA argues that one of the key requirements—the draft Bill of Lading—is often unavailable at the stage required by KRA.
“Securing the Bill of Lading or even a draft Bill of Lading is not possible as being requested. These documents are only available after shipping lines receive the containers,” Ogambi said.
The council warned that failure to secure approval before cargo departs could result in containers missing scheduled vessels or flights, disrupting supply chains and increasing freight costs.
Manufacturers relying on imported raw materials could also face production delays.
The lobby further argues that the ACD duplicates information already submitted through existing government platforms, including the Import Declaration Form (IDF), cargo manifests, KenTrade and KRA customs systems.
“The ACD introduces another declaration when traders already provide similar information through several government systems. Instead of simplifying trade, it increases paperwork and compliance costs,” Ogambi said.
He urged the government to pursue a single integrated declaration shared across all border agencies rather than introducing another standalone compliance process.
The council also raised concerns over uncertainty regarding who will bear the cost of using the new platform.
“KRA must come out clearly and state who is going to meet the costs for using the platform. If payments are required, the authority should consider using part of the IDF fees instead of introducing another cost to traders,” Ogambi said.
He noted that suppliers abroad have already expressed reservations about assuming new compliance responsibilities without clear legal or commercial arrangements.
“If these concerns are not addressed, we foresee serious delays, additional costs and ultimately loss of revenue,” he added.
Industry players are also seeking clarity on whether August 3, marks the official launch of the platform or the beginning of mandatory enforcement.
According to SCEA, many importers, freight forwarders, overseas suppliers and exporters are still trying to understand the new requirements.
Traders say a phased rollout would allow businesses sufficient time to align their systems and train users without disrupting trade.
In a public notice, KRA said the Advance Cargo Declaration platform is “intended to facilitate electronic declaration of containerised cargo before arrival in Kenya, enabling customs authorities to receive shipment information earlier.”
The requirement will apply to importers, exporters, ship-owners, carriers, shipping agents, customs agents and other parties involved in international cargo movement.
However, traders insist the success of such reforms depends on adequate stakeholder engagement, seamless integration with existing state systems and avoiding additional compliance costs that could erode Kenya’s competitiveness as a regional trade hub.
