East African Community: Customs and duty changes for the 2026/2027 tax year

The East African Community (EAC) Council of Ministers issued legal instruments, which became effective July 1, 2026, implementing changes to the Common External Tariff (CET) and related customs measures for the 2026/2027 tax year. The FY 2026/2027 measures reinforce the EAC's industrialization agenda by combining higher tariffs on selected finished goods with duty relief for manufacturing inputs, strategic projects and priority sectors. Key changes are summarized below.

Kenya

• Increasing import duty on selected furniture products from 35% to 45% after classifying them as sensitive goods
• Increasing import duty on specified baby diapers and handbags from 25% to 35% to encourage local production
• Continuing duty remission schemes for approved textile and garment manufacturers through duty-free access to qualifying production inputs

Uganda

• Expanding the list of sensitive products to include selected processed foods and household consumables, including certain edible oils, butter, biscuits, sausages, and prepared foods, which will be subject to higher import duty rates ranging from 36% to 60% of the customs value to promote local agro-processing and manufacturing
• Increasing duty under stay of application on specified products, including polyvinyl chloride (PVC) trunking, tarpaulins, ceramic toilet seats and cisterns, and baby diapers, from 25% to 35%
• Extending duty remission schemes for textile, garment, and footwear manufacturers through duty-free importation of approved raw materials and intermediate inputs

Tanzania

• Reducing import duty on vitenge from 50% to 35%
• Increasing duty under stay of application on specified products, including doors, windows, horticultural products, and baby diapers, from 25% to 35%
• Reducing import duty from 25% to 0% on buses for the transportation of more than 25 persons and smart cards imported for national identification (ID) programs
• Continuing duty remission for approved textile and footwear manufacturers

Rwanda

• Reducing import duty to 0% for electric and hybrid buses and trucks, smart cards, and related inputs for national ID projects
• Increasing duty under stay of application on specified products, including aluminum sufurias, kettles, and milk cans, from 25% to 35%
• Expanding duty remission schemes to cover a broader range of manufacturing inputs, including plastics, packaging, agro-processing, and light manufacturing
• Continuing duty remission for textile and footwear manufacturers

Burundi

• Reducing import duty on selected commercial vehicles and trailers
• Expanding duty remission schemes for industrial raw materials and manufacturing inputs
• Continuing duty-free treatment for approved textile and garment production inputs

Regional measures

Several measures apply across multiple partner states, including:

• Increasing import duty on selected steel, iron, and aluminum products to support regional metal industries
• Providing a 0% import duty rate for qualifying government and public-private partnership infrastructure projects in participating partner states
• Expanding customs exemptions for certain government agencies and specialized aviation and security materials
• Temporarily suspending the local sourcing requirements for specified components, including seats and seat frames, mudguards, wheel rims, brake gear, and exhaust pipes, used in the assembly of completely knocked down (CKD) motorcycle kits, to support and encourage local motorcycle assembly
• Continuing the expansion of duty remission programs to lower production costs for qualifying manufacturers, subject to compliance with applicable conditions

Read a July 2026 report prepared by the KPMG member firm in Kenya