Introduction of the East Africa Community Assembly and Manufacturing of Products Regulations, 2023

Manufacturers across the East African region, particularly those involved in the importation and assembly of Semi Knocked Down (SKD) and Completely Knocked Down (CKD) kits, have long sought tax and fiscal incentives to enhance competitiveness and support local value addition. These requests were pursued at national level and often in isolation, resulting in delayed and inconsistent implementation of incentives across the region.

The East African Community (EAC) Assembly and Manufacturing of Products Regulations, 2023 (The Regulations) introduce a major shift from this fragmented approach. The Regulations establish a harmonised regional framework that standardises access to tax and fiscal incentives across all EAC Partner States. They link incentives directly to registration, compliance with prescribed assembly levels, and the use of locally manufactured inputs. In doing so, they promote predictability, transparency, and fair competition, while supporting the EAC’s broader industrialisation and value‑addition agenda.

Click the link below to explore our analysis on how these regulations are set to impact manufacturers and assemblers across the automotive industry, and what this means for the future of the sector.

KPMG remains available to assist taxpayers with the adoption of the East African Community Assembly and Manufacturing Regulations, 2023 and other customs‑related matters.