What Has Changed?
The Finance Act, 2026 amended paragraph 99 of Part I of the First Schedule to the VAT Act concerning goods imported by returning residents and passengers.
The value of qualifying goods that may be brought into Kenya VAT-free as accompanied baggage increased from USD 300 to USD 2,000.
This applies subject to the conditions provided under the relevant customs and VAT provisions.
What Does This Mean?
Returning residents and passengers can now bring in qualifying goods with a value of up to USD 2,000 instead of the previous USD 300 threshold without VAT being charged on those qualifying goods.
This represents a significant increase in the relief available to returning travellers.
THK Takeaway
The USD 2,000 threshold does not mean that every item brought into Kenya by a returning passenger is automatically VAT-free. The goods must meet the applicable conditions for the relief.
Source: Finance Act, 2026 — Paragraph 99 of Part I of the First Schedule to the VAT Act.
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