You’re right in that you do pay the customs duty at the bank, but that’s done right there at the airport, then you bring that receipt with you back to the KRA desk and have it cleared. My quote about making friends with a KRA official is not a veiled suggestion that I’ll bribe anyone – I don’t. It’s instead a nod to the fact that in Kenya you need to build relationships in order to make things smoother.

Another issue, that you raise here yourself, is the variance in rates. You note that an white person gets charged higher rates, this is true, it’s also true that different KRA officials will charge different rates themselves on the same things. The problem with the system is that it’s ripe for (any) interpretation, meaning there is added risk for everyone – not just white people. Just ask Wananchi Group about their pain in importing finished products like routers into the country – whole containers are charged at haphazard and crazy rates which vastly increase the cost of them doing business.

As to what I’m doing, I’m starting by documenting my problems and I’ve already spoken to one government official. I’ll continue to do the same and lobby for the changes we need.

First, let me start by applauding you for your heroic efforts. I hope it pays out.

A number of points are not clear from this piece. For example, you stated that, “… we have to pay $300 (26,000 Ksh)”, which implies that you haven’t paid the stated amount (at least, by the time of writing). If not, are you going to pay or will you seek redress?

It’s also not clear to me whether or not you opposed the charges vigorously. Note that I’m not saying you are OK with them but that, if this is corruption, we have to be willing to stand up to it, especially if we’re on the right. Requesting to see a senior officer could help. I know of individuals who have had to pay customs duty and these were reasonably charged. Moreover, if I’m not mistaken (correct me if I’m wrong), customs duty should be paid at a bank in which case you would have evidence of being overcharged and can then seek redress. Your comment to one of the responses that “… Better than a customs broker, I think I need to make friends with a KRA official… as much as I hate to think about it.” is, to quote a great man, ‘building on sand’.

The article paints a bleak picture for anyone who hopes to venture into some form of hardware design and I have no doubt this is largely true. But as pioneers in electronics manufacture you need to define a corruption-free path for others to follow. People are watching with bated breath and if you know Kenyans it’s bound to soon be a crowded industry. There is much to be done in local hardware but this hardly makes for a rosy start. Nevertheless, I’m quite certain that similar items have been previously imported. For example, I worked for a Kenyan Indian in Westlands, who owns an industrial electronics firm. He must have, at one point or another, needed such devices.

Also note that foreigners are usually charged higher customs duty. Not that you’re a foreigner but the fact that you are a mzungu might have had something to do with it. Actually, the fact that you’re mzungu should be to your advantage…

Finally, it appears that KRA collect information on new items so that in future they can apply similar custom charges (custom rulings? see here). Could it be that this will then be what you and everyone else will have to pay henceforth? I’m not sure…

Despite all this, it’s great to see what you’re doing. I wish you well.

PK

My business was successful in that kept me fed. Just. I consciously closed it and escaped into “software” solution provision. There is a part of me calling out to hardware…

I say we storm the Ministry of Industrialization and put our asks on the table. With the BRCK, we can.

Can’t we?

Better than a customs broker, I think I need to make friends with a KRA official… as much as I hate to think about it. 🙂