Commonwealth Trade MSME Exporter Portal

馃嚢馃嚜 Kenya 路 Category 6 of 9

Tax information

Verified 路 2 Jun 2026

Exports of goods are VAT zero-rated in Kenya, and EPZ/SEZ exporters enjoy duty and tax incentives, but all filings run through KRA iTax and iCMS.

Overview

Kenya taxes exports lightly by design in order to keep them competitive. The export of goods is a zero-rated supply under the VAT Act, meaning you charge 0% VAT on the export sale and can reclaim input VAT, provided the export is properly documented and declared. From 2026 KRA is integrating export data captured in the iCMS customs system with the zero-rated declaration in the iTax VAT return, so your export invoices must be issued through TIMS/eTIMS with the correct exporter PIN and invoice number to be validated and prefilled. Exporters manufacturing under the Export Processing Zones Act or Special Economic Zones Act receive substantial incentives, including corporate-tax holidays, duty-free import of raw materials and machinery, and VAT relief on inputs. Manufacturers importing raw materials to produce goods for export within the EAC can also apply for duty remission. For a small exporter the essentials are: keep an active iTax account, issue eTIMS-compliant zero-rated invoices, and retain proof of export to support VAT refund claims.

Key requirements

  1. 1

    Zero-rated VAT on exports

    Export of goods is zero-rated under the Second Schedule of the VAT Act; you charge 0% and may reclaim input VAT with valid export proof.

  2. 2

    eTIMS / TIMS invoicing

    Zero-rated export invoices must be issued electronically through TIMS/eTIMS with the exporter PIN and invoice number so they validate against iCMS export data.

  3. 3

    EPZ / SEZ incentives

    Enterprises under the EPZ or SEZ Acts enjoy corporate-tax holidays, duty-free imports of inputs and machinery, and VAT relief on production inputs.

  4. 4

    EAC duty remission

    Approved manufacturers importing raw materials to make goods for export within the EAC can apply for duty remission under the EAC scheme.

Documents you will need

  • KRA PIN and active iTax account
  • eTIMS/TIMS zero-rated export invoices
  • Export declaration / iCMS entry as proof of export
  • VAT return (iTax) with zero-rated supplies declared
  • EPZ/SEZ licence where applicable
  • Duty remission approval where applicable