Guidelines for Returning Residents

Kenyans Living Abroad

Guidelines for Returning Residents

Who is a returning resident?

A returning resident is a KENYAN CITIZEN changing residence from a place outside Kenya to a place within Kenya.

What are the taxes exempted and what legislation supports the exemption?

Returning residents are exempt from payment of Import Duty, Excise Duty, Value Added Tax (VAT), and Import Declaration Fee (IDF). The following are the legal provisions for the exemption of the said taxes:

Import Duty – 5^th Schedule Part B Item 5 of the EACCMA (2004) Act
Excise Duty – 2^nd Schedule Part A Item 6 of the Excise Duty Act
Value Added Tax (VAT) – 1^st Schedule Part 1 Item 99 of the VAT Act
Import Declaration Fee (IDF) – 2^nd Schedule Part A Item (vi) Miscellaneous Fees & Levies Act

Railway Development Levy (RDL) is chargeable under Section 8 of the Miscellaneous Fees and Levies Act, Cap 469C.

What goods are covered under the exemption regime for returning residents?

Wearing apparel.
Personal and household effects of any kind, which were in personal use in the former place of residence.
One motor vehicle (excluding buses and minibuses of seating capacity of more than 13 passengers and load-carrying vehicles of capacity exceeding two tonnes) which the passenger has personally owned and used outside Kenya for at least twelve months (excluding the period of the voyage in the case of shipment).

Any conditions to be met for qualification of exemption as a returning resident?

For qualification of exemption as a returning resident, the following conditions apply:

Demonstration of having resided outside Kenya — present a valid passport, visa, or work/student permit.
Demonstration that the person is permanently changing residence by returning to Kenya — passport entry endorsement.
In the case of a motor vehicle, evidence of ownership and usage of the motor vehicle for at least twelve months.

Are spouses and children tax exempt on returning resident basis?

Spouses and children of 18 years and above are exempt from taxes on the said goods provided that they meet all the conditions for returning residents. Such conditions include:

That the goods were for personal and household use in the former place of residence.
The conditions for a motor vehicle apply, i.e., one motor vehicle (excluding buses and minibuses of seating capacity of more than 13 passengers and load-carrying vehicles of capacity exceeding two tonnes) which the passenger has personally owned and used outside Kenya for at least twelve months (excluding the period of the voyage in the case of shipment).
Evidence of residence outside Kenya (e.g., work permits, residence permits).
Evidence of returning to Kenya (e.g., passport entry endorsement, completion of contract/work assignment).

For spouses who are not Kenyan citizens, they may be accorded tax exemption on first-arrival basis provided that they are coming to execute an assignment whose contract is not less than two years.

After what period is a returning resident entitled for another exemption (motor vehicles)?

A person is accorded an exemption on another motor vehicle once every four years and provided that all the duties on the earlier exempted motor vehicle have been paid. (Paragraph 5(3)(d) of the Fifth Schedule Part B of the East African Community Customs Management Act, 2004).

What documents will be required for processing the exemptions?

The following documents will be required when processing the exemptions:

Importation documents – Invoice, Bill of Lading/Air Waybill, Packing List
Passport – showing the entry and exit stamps
Evidence of residence outside Kenya
Interpol clearance for motor vehicles
Evidence of ownership of the motor vehicle for at least 12 months

Any other conditions to be met?

The mentioned goods for exemption must be shipped and imported into Kenya within ninety (90) days of the date of arrival of the passenger, or such further period not exceeding three hundred and sixty (360) days from such arrival as the Commissioner may allow.
Where any person who has been granted an exemption under returning-resident basis changes residence to a place outside Kenya within ninety days from the date of arrival, they shall export their personal or household effects within thirty days, or such further period not exceeding sixty days from the date they change residence to a place outside a Partner State, as the Commissioner may allow; otherwise duty becomes payable from the date of importation.

You are allowed, among other items, one motor vehicle (excluding buses and minibuses) into the country duty free subject to the following conditions:

Evidence of ownership and use of the vehicle for at least twelve months before return.
The vehicle must not be more than eight years old from the date of manufacture.
Evidence of travel (i.e., passport or appropriate travel documentation).
The vehicle must be shipped into the country within ninety days or further period not exceeding 360 days upon approval by the Commissioner, of the return of the individual resident.
The individual must not have enjoyed a similar exemption within the last four years.
The household goods and personal effects should have been in personal use by the person in their previous residence before return to Kenya.