This is an incentive given to investors in the sector who are either constructing or upgrading their facilities. Once the request is submitted, TRA will analyze it in line with the Government Policy on development of tourist accommodation facilities and make the necessary recommendations to The Commissioner of Customs Services (Kenya Revenue Authority)through the Cabinet Secretary, Ministry of Tourism. TRA and other relevant Government agencies will be carrying out compliance checks from time to time.
Requirements for Duty Exemptions
Customs duty exception is provided for under the East African Community Customs Management Act, 2004, Fifth Schedule, Part B, Item 21 for the following items:-
1. Washing machines
2. Kitchen ware
4. Fridges and freezers
5. Air Conditioning Systems
10. Linen and Curtains
11. Gymnasium Equipment
The items must be engraved, printed or marked with the logo of the tourist hospitality establishment importing for its use.
The Application Process
The applicant writes to the Cabinet Secretary, Ministry Tourism and the application letter must have the following information:-
i. A comprehensive list of items for which exemption is being sought; with their quantities and value stated (hard and soft copy in word format);
ii. Value of the facility;
iii. Size of land utilized or to be utilized;
iv. Number of staff employed or to be employed; and
v. Number of rooms and beds the hotel has or will have.
In addition, the following items need to be attached.
i. Copy of Certificate of Incorporation;
ii. Memorandum and Articles of Association;
iii. Copy of tax registration certificate;
iv. Copy of PIN certificate;
v. Valid Tax Compliance Certificate;
vi. Copy of Title Deed or Lease for the premises;
vii. Feasibility study, detailing the project, company profile, ownership, structure and project proposal for new facilities;
viii. A copy of Bill of Lading and/ or Airway Bill in the name of the hotel;
ix. A copy of the invoice; and
x. Import Declaration Form (IDF).
The applicant will submit two copies of the above. The Customs Services Department may request for other documents as may be deemed necessary.