On 21 September 2026, the Kenya Revenue Authority (KRA) published a public notice regarding the renewal of licences for Bonded Warehouses, Manufacture Under Bond (MUB) facilities, and Transit Godowns for the 2027 licensing year. This notice is issued pursuant to the East African Community Customs Management Act (EACCMA) 2004, the Customs (Bonded Warehouses) Regulations 2010, and the Customs (Manufacture Under Bond) Regulations 2010. These licences authorize the secure storage of dutiable goods without immediate payment of customs duties and taxes, as well as the manufacture of goods for export or local market under duty deferment schemes. The renewal process ensures that licensed premises continue to meet stringent security, record-keeping, and operational standards.
Key Takeaways
- Comprehensive Facility Compliance Audit: Licence holders must demonstrate continued compliance with physical security requirements (perimeter fencing, CCTV, access controls), accurate stock accounting systems, and segregation of bonded and duty-paid goods. KRA will conduct on-site inspections to verify that warehouse layouts, fire suppression systems, and inventory management software meet prescribed standards. Non-compliance may result in licence suspension or revocation.
- Financial Guarantees and Bond Adequacy: Renewal applications must be accompanied by a valid security bond or bank guarantee covering the maximum potential duty liability of goods held in the facility. For MUB operators, the bond must also cover excise duty liabilities on raw materials used in manufacturing. KRA will review the adequacy of existing bonds and may require upward adjustment based on projected throughput for 2027.
- Digital Integration with iCMS and eTIMS: Effective 2027, all bonded warehouse operators are required to integrate their warehouse management systems (WMS) with the iCMS platform for real-time stock declaration and movement tracking. MUB operators must also link production records with the electronic Tax Invoice Management System (eTIMS) to ensure seamless verification of input-output ratios and duty exemption claims. This integration aims to eliminate manual returns and enhance customs control over duty-suspended regimes.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement