Online shopping makes it easy to order from anywhere in the world. The surprise comes when the courier calls to say that duty, VAT and fees are due before delivery. These charges are not a courier invention. They are the same taxes that apply to goods arriving by sea or air cargo, collected through a faster process. Understanding them helps you decide whether an item is worth buying and avoid delays.

Do couriers pay duty?

Goods that enter Kenya, whatever the route, are subject to customs control. Courier companies act as customs agents and declare the parcel on your behalf. The duty and taxes are assessed on the customs value, which is the price you paid plus shipping and insurance to Kenya, using the rules explained in customs valuation explained. The courier pays the charges to KRA and collects them from you, together with their own handling fee.

What is charged

  1. Import duty, at the rate for the item's HS code: HS codes and customs classification.
  2. Excise duty, for items in excisable categories.
  3. VAT at 16% on the customs value plus duty and excise.
  4. Import Declaration Fee (IDF) of 2.5% of the customs value, with a minimum, and Railway Development Levy (RDL) of 2%. See IDF and RDL explained.
  5. Courier and clearing fees, which are charged by the company and are not taxes.

Use the import duty calculator to estimate the total before you buy, and the landed cost calculator to include shipping.

Worked example

You buy a pair of running shoes for KES 10,000 including KES 2,000 delivery. Suppose the duty rate for footwear is 25 percent. Duty is KES 2,500, the base for VAT is KES 12,500 and VAT at 16 percent is KES 2,000. IDF and RDL add a small amount, and the courier adds its fee. A KES 10,000 purchase can cost close to KES 15,000 on the doorstep. Compare with a local price before you click buy.

Gifts and low-value items

People often ask if gifts or items below a certain value are exempt. Customs rules do have relief for some low-value or non-commercial consignments, but the rules and limits are narrow and change, and goods that look commercial, such as many units of the same item, are treated as commercial. Do not rely on a "no tax below a value" rule; check the current position with the courier or KRA.

Commercial importers and small traders

If you buy for resale, a courier clearance is just a small import and the same rules apply. Keep the courier's invoice, the customs entry and your supplier invoice, since the customs entry supports your input VAT claim if you are registered: importing goods for resale: VAT and records. Consider cargo by sea or air freight instead of courier when volumes grow: see air versus sea freight.

Documents that avoid delays

  • A commercial invoice showing the real price paid, not a lower declared value
  • A clear item description (not "gift" or "samples" when it is not)
  • Your KRA PIN, which is needed for the declaration
  • Your ID and a working phone number
  • Any permit for regulated goods, such as standards or medical items

Understating the value is a customs offence. Customs can revalue goods using reference prices, and you will pay more plus penalties.

Restricted goods

Medicines, food, plants, electronics with radio parts and other regulated items may need approval, and some goods are banned. Read prohibited and restricted imports before you order.

Tips to save money

  • Add all costs when comparing prices with local shops
  • Combine orders sensibly but do not split to avoid duty, which is illegal
  • Ask the seller for an itemised invoice
  • Choose delivery terms that include shipping in the price, so the value is clear (see Incoterms explained)
  • Track your parcel and answer the courier's customs query quickly, because uncollected parcels attract storage fees

If you buy often, compare the cost of ordering several items together using the import duty and landed cost workbook, and read how to calculate import duty on goods and import documents checklist to see what customs will want to see.

Frequently asked questions

Can I refuse to pay and return the parcel? You can refuse delivery, but return shipping costs and fees may apply, and the goods may be held. Decide before you order.

Is the duty based on the price on the receipt or on the website? On the price actually paid, supported by the invoice. Customs may question values far below normal market prices.

Do I need a KRA PIN to receive a parcel? Yes. Declarations require the importer's PIN.

Are books and educational items taxed? Some printed materials have favourable treatment. The result depends on the HS code and current rules.