KRA Launches Three Trade Facilitation Hubs to Ease Cargo Transit, Strengthen Regional Trade

 


The Kenya Revenue Authority (KRA) has recently inaugurated three trade facilitation hubs in Kainuk, Lodwar, and Kakuma, aiming to enhance cargo transit efficiency and bolster regional trade along the Northern Corridor. This strategic initiative seeks to improve trade facilitation and compliance, unlock business opportunities in Turkana County, and reinforce Kenya's position as a hub for international and regional trade.

These new centers are expected to alleviate congestion at the Malaba and Busia border posts and significantly reduce transit times for cargo moving from Mombasa to South Sudan. By hosting KRA staff, including the Rapid Response Unit and Enforcement teams, the facilities aim to ensure the safe movement of goods, addressing challenges such as robberies, smuggling, and cargo dumping along the corridor.

Dr. Lilian Nyawanda, KRA's Commissioner for Customs and Border Control, emphasized that the primary objective of these centres is to provide legitimate trade-related services to local communities, facilitate exports, and strengthen economic ties with neighboring countries. Their strategic location along the Lokichar-Nadapal-Nakodok route is expected to enhance trade efficiency and foster economic development in the region.

Tax Amnesty Program.

Financial Impact:

As of early March 2025, KRA reported waiving approximately Kshs 140 billion in penalties and interest under this tax amnesty program. This substantial waiver underscores the program's effectiveness in encouraging taxpayers to settle their tax obligations.

Encouragement to Participate:

Taxpayers are strongly encouraged to take advantage of this amnesty before June 30, 2025, deadline to benefit from the waivers and avoid potential enforcement actions.

Eligibility Criteria for the Tax Amnesty:

  1. Taxpayers with Outstanding Principal Tax Obligations:
    • Individuals: Those who owe taxes related to income tax, VAT, excise duties, or other applicable taxes.
    • Businesses: Companies that have outstanding taxes such as corporate tax, VAT, or other business-related taxes.
    • Other Entities: This includes partnerships, sole proprietors, and organizations that have accrued tax obligations.
  2. Taxes Accrued up to December 31, 2023:
    • The tax amnesty covers taxes owed up until December 31, 2023. Any tax liabilities arising after this date are not eligible for the amnesty.
    • It applies to both unpaid principal tax and penalties or interest that have accrued over time for periods up to the cut-off date.

Conclusion.

The ongoing tax amnesty program offers a unique opportunity for taxpayers to clear outstanding tax obligations by waiving penalties and interest, allowing individuals and businesses to reset their tax affairs without the added burden of extra costs, all while positioning themselves for future compliance and growth. 

Coupled with the launch of the three trade facilitation hubs in Kainuk, Lodwar, and Kakuma, which will streamline cargo transit and foster regional trade, these initiatives are designed to promote a more efficient and compliant business environment. 

Now is the perfect time for taxpayers and traders to take advantage of these opportunities—whether it’s regularizing tax affairs through the amnesty or capitalizing on the new trade hubs to enhance operations and expand market reach—ultimately driving both personal and national economic growth.

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