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FIRST SCHEDULE - EXEMPT SUPPLIES: PART I

EXEMPT GOODS: (Sec A&B)

Shortcuts:    Section-A, Par39, Par80, Section-B

Section A -

The supply or importation of the following goods shall be exempt supplies.

  • 1. Bovine semen of tariff no.0511.10.00.
  • 2. Fish, eggs and roes of tariff no. 0511.91.10.
  • 3. Animal semen other than bovine of tariff no. 0511.99.10.
  • 4. Soya beans, whether or not broken of tariff nos.1201.10.00 and 1201.90.00.
  • 5. Groundnuts, not roasted or otherwise cooked, in shell of tariff no.1202.41.00.
  • 6. Groundnuts, not roasted or otherwise cooked, shelled, whether or not broken of tariff no1202.42.00.
  • 7. Copra of tariff no1203.00.00.
  • 8. Linseed, whether or not broken of tariff no.1204.00.00.
  • 9. Low erucic acid rape or colza seeds of tariff no.1205.10.00.
  • 10. Other rape or colza seeds of tariff no.1205.90.00.
  • 11. Sunflower seeds, whether or not broken of tariff no1206.00.00.
  • 12. Cotton seeds, whether or not broken of tariff nos.1207.21.00 and 1207.29.00.
  • 13. Sesamum seeds, whether or not broken of tariff no.1207.40.00. 
  • 14. Mustard seeds, whether or not broken of tariff no.1207.50.00.
  • 15. Safflower seeds, whether or not broken of tariff no.1207.60.00.
  • 16. Other oil seeds and oleaginous fruits, whether or not broken of tariff no.1207.99.00.
  • 17. Pyrethrum flower of tariff no.1211.90.20.
  • 18. Live Animals of chapter 1.
  • 19. Meat and edible meat offals of chapter 2 excluding those of tariff heading 0209 and 0210.
  • 20. Fish and crustaceans, muluscs and other quaticinveterbrates of chapter 3 excluding those of tariff heading 0305, 0306 and 0307. Deleted by (Finance Act 2023 wef 1st-July-2023 s37) 
  • 20. Fish and crustaceans, molluscs and other aquatic invertebrates of Chapter 3 excluding those of tariff headings 0305, 0306 and 0307;  (Finance Act 2023 wef 1st-July-2023 s37) 
  • 21. Unprocessed milk.
  • 22. Fresh birds eggs in shell.
  • 23. Edible Vegetables and certain roots and tubers of chapter 7, excluding those of tariff heading 0711.
  • 24. Edible fruits and nuts, peal of citrus fruits or melon of chapter 8 excluding, those of tariff heading 0811,0812, 0813 and 0814.
  • 25. Cereals of chapter 10, excluding seeds of tariff heading 1001, 1002 and 1003.Finance Act, 2018 Effective 1st July 2018 
  • 26. Fertilisers of chapter 31. (Finance Act 2022-wef-01-July-2022)
  • 27. Plants and machinery of chapter 84 and 85 used for the manufacture of goods. . Finance Act, 2018 Effective 1st July 2018 , (TaxLAA-No1-2020 wef-25April2020) 
  • 28. Maize (corn) seed of tariff no.1005.10.00. Finance Act, 2018 Effective 1st July 2018 
  • 29. Taxable supplies, excluding motor vehicles, imported or purchased for direct and exclusive use in the construction of a power generating plant, by a company, to supply electricity to the national grid approved by Cabinet Secretary for National Treasury upon recommendation by the Cabinet Secretary responsible for energy (TaxLAA-No1-2020 wef-25April2020) 
  • 30. Taxable supplies, excluding motor vehicles, imported or purchased for direct and exclusive use in geothermal, oil or mining prospecting or exploration, by a company granted prospecting or exploration license in accordance with Geothermal Resources Act (No. 12 of 1982), production sharing contracts in accordance with the provisions of Petroleum (Exploration and Production) Act (Cap. 308) or mining license in accordance with the Mining Act (Cap. 306), upon recommendation by the Cabinet Secretary responsible for energy or the Cabinet Secretary responsible for mining, as the case may be. (TaxLAA-No1-2020 wef-25April2020) 
  • 30A Taxable supplies, procured locally or imported for the construction of liquefied petroleum gas storage facilities with a minimum capital investment of four billion shillings and a minimum storage capacity of fifteen thousand metric tonnes as approved by the Cabinet Secretary for National Treasury upon recommendation by the Cabinet Secretary responsible for liquefied petroleum gas. Statutory amendments act No 11 of 2017, (TaxLAA-No1-2020 wef-25April2020) 
  • 31. Agricultural pest control products. Finance Act 2017 Effective 3rd April 2017 
  • 32. Syringes, with or without needles of tariff no. 9018.31.00.
  • 33. Disposable plastic syringes of tariff no. 9018.31.10.  (Finance Act 2021- wef-01July2021)
  • 34. Other syringes with or without needles of tariff no. 9018.31.90. (Finance Act 2021- wef-01July2021)
  • 35. Tubular metal needles and needles for sutures of tariff no. 9018.32.00.
  • 36. Catheters, cannulae and the like of tariff no. 9018.39.00.
  • 37. Blood bags.
  • 38. Blood and fluid infusion sets.
  • 39.
    • (1) Subject to paragraphs (2) and (3), materials, articles and equipment, including motor vehicles, which—
      • (a) are specially designed for the sole use by disabled, blind and physically handicapped persons;   
      • (b) are intended for the educational, scientific or cultural advancement of the blind disabled for the use of an organization approved by the national Government for purposes of exemption. Finance Act, 2017 Effective 3rd April 2017
    •  (2) The exemption under paragraph (1) shall only apply—
      • 3003.20.00  - Medicaments containing other antibiotics not put up in measured doses or in forms or packings for retail sale.
      • 3003.31.00 - Medicaments containing insulin, not put up in measured doses or in forms or packings for retail sale.
      • 3003.31.00 Insulin (Finance Act 2021- wef-01July2021)
      • 3003.39.00 Other medicaments, containing hormones or other products of heading No. 29.37 but not containing antibiotics, not put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3003.39.00  - Other medicaments, containing hormones or other products of heading No. 29.37 but not containing antibiotics, not put up in measured doses or in forms or packings for retail sale* Other medicaments, containing hormones or other products of heading no. 29.37, not put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020) Amended by (Finance Act 2023 wef 1st-July-2023 s37*) 
      • 3003.40.00 Medicaments containing alkaloids or derivatives thereof but not containing hormones or other products of heading No. 29.37 or antibiotics, not put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3003.40.00  - Medicaments containing alkaloids or derivatives thereof but not containing hormones or other products of heading No. 29.37 or antibiotics, not put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020)
      • 3003.41.00, 3003.42.00, 3003.43.00, and 3003.49.00 Other medicaments, containing alkaloids or derivatives thereof, put up in measured doses or in forms or packings for retail sale   (Finance Act 2023 wef 1st-July-2023 s37) 
      • 3003.90.00  - Other.(TaxLAA-No1-2020 wef-25April2020)
      • 3003.90.10 Infusion solutions for ingestion other than by mouth not put up in measured doses or in forms or packings for retail sale.Finance Act, 2015 effective 12th June 2015
      • 3003.90.00 Infusion solutions for ingestion other than by mouth not put up in measured doses or in forms or packings for retail sale and other medicaments consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale.  (Finance Act 2023 wef 1st-July-2023 s37) 
      • 3003.90.10  - Infusion solutions for ingestion other than by mouth not put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020) Deleted by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 3003.90.90 Other medicaments (excluding goods of heading No. 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale.Finance Act, 2015 effective 12th June 2015
      • 3003.90.90  - Other medicaments (excluding goods of heading No. 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020)
      • 3004.10.00 Medicaments containing penicillins or derivatives thereof, with a penicillanic acid structure, or streptomycins or their derivatives, put up in measured doses or in forms or packings for retail sale.Finance Act, 2015 effective 12th June 2015
      • 3004.10.00   - Medicaments containing penicillin or derivatives thereof, with a penicillanic acid structure, or streptomycin or their derivatives, put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020)
      • 3004.20.00 Medicaments containing other antibiotics, put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.20.00  - Medicaments containing other antibiotics, put up in measured doses or in forms or packings for retail sale* Other medicaments containing antibiotics, put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020) Amended by (Finance Act 2023 wef 1st-July-2023 s37*) 
      • 3004.31.00 - Medicaments containing insulin put up in measured doses or in forms or packings for retail sale. 
      • 3004.32.00  Medicaments containing adrenal cortical hormones, put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.32.00   - Medicaments containing adrenal cortical hormones, put up in measured doses or in forms or packings for retail sale* Other, medicaments containing hormones or other products of heading 29.37 containing corticosteroid hormones, their derivatives or structural analogue of tariff..(TaxLAA-No1-2020 wef-25April2020) Amended by (Finance Act 2023 wef 1st-July-2023 s37*) 
      • 3004.39.00 Other medicaments containing hormones or other products of heading No. 29.37 but not containing antibiotics, put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.39.00   - Other medicaments containing hormones or other products of heading No. 29.37 but not containing antibiotics, put up in measured doses or in forms or packings for retail sale. (TaxLAA-No1-2020 wef-25April2020)
      • 3004.40.00 Medicaments containing alkaloids or derivatives thereof but not containing hormones, or other products of heading No. 29.37 or antibiotics, put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.41.00  - Containing ephedrine or its salts.(TaxLAA-No1-2020 wef-25April2020)
      • 3004.42.00  - Containing pseudoephedrine (INN) or its salts.(TaxLAA-No1-2020 wef-25April2020)
      • 3004.43.00 Other medicaments, containing alkaloids or derivatives containing norephedrine or its salts. (Finance Act 2021- wef-01July2021)
      • 3004.49.00  - Other.(TaxLAA-No1-2020 wef-25April2020)
      • 3004.50.00 Other medicaments containing vitamins or other products of heading No. 29.36 put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.50.00  - Other medicaments containing vitamins or other products of heading No. 29.36 put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020)
      • 3004.60.00 Other, containing antimalarial active principles described in Subheading Note 2 to this Chapter. (Finance Act 2021- wef-01July2021)
      • 3004.90.00 Other medicaments (excluding goods of heading No. 30.02,30.05 or 30.06 ) consisting of mixed or unmixed products, for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.90.00   - Other medicaments (excluding goods of heading No. 30.02, 30.05 or 30.06) consisting of mixed or unmixed products, for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale.(TaxLAA-No1-2020 wef-25April2020)
      • 3004.90.10 Infusion solutions for ingestion other than by mouth put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.90.90 Other medicaments (excluding goods of heading No. 30.02, 30.05 or 30.06) consisting of mixed or unmixed products, for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale. Finance Act, 2015 effective 12th June 2015
      • 3004.90.90   - Other medicaments (excluding goods of heading No. 30.02, 30.05 or 30.06) consisting of mixed or unmixed products, for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale. (TaxLAA-No1-2020 wef-25April2020) 
      • 3005.10.00 - Adhesive dressings and other articles having an adhesive layer impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes.
      • 3005.90.10 - White absorbent cotton wadding, impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes. Deleted by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 3005.90.11, 3005.90.12, 3005.90.19 White absorbent cotton wadding, impregnated or coated with pharmaceutical substances, or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes.  (Finance Act 2023 wef 1st-July-2023 s37) 
      • 3005.90.90 - Other wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes. Deleted by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 3006.10.00  -Sterile surgical catgut, similar sterile suture materials and sterile tissue adhesives for surgical wound closure, sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics.
      • 3006.20.00* 3822.13.00- Blood-grouping reagents. Amended by (Finance Act 2023 wef 1st-July-2023 s37*) 
      • 3006.30.00 - Opacifying preparations for X-ray examinations; diagnostic reagents designed to be administered to the patient.
      • 3006.40.00 - Dental cements and other dental fillings; bone reconstruction cements.
      • 3006.50.00 - First-aid boxes and kits.
      • 3006.60.00 - Chemical contraceptive preparations based on hormones or on other products of heading 29.37 or spermicides . Amended by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 3006.70.00 - Gel preparations designed to be used in human or veterinary medicine as a lubricant for parts of the body for surgical operations or physical examinations or as a coupling agent between the body and medical instruments.
      • 3006.91.00 - Appliances identifiable for ostomy use.
      • 3006.92.00 - Waste pharmaceuticals.
      • 8309.90.90 - Alluminium pilfer proof caps with EPE liner.
      • 8407.10.00 - Aircraft engines,.... Finance Act, 2015 effective 12th June 2015
      • 8409.10.00 - For aircraft engines,.... Finance Act, 2015 effective 12th June 2015
      • 8802.11.00 - Helicopters of an unladen weight not exceeding 2,000 kg.(Finance Act 2020- wef-01July2021)
      • 8802.12.00 - Helicopters of an unladen weight exceeding 2,000 kg. (Finance Act 2020- wef-01July2021)
      • 8802.20.00 - Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg. (Finance Act 2020- wef-01July2021)
      • 8802.30.00 - Aeroplanes and other Aircrafts on unladen weight exceeding 2,000 kgs but not exceeding 15,000 kg. (Finance Act 2020- wef-01July2021)
      • 8802.40.00 - Aeroplanes and other Aircraft of unladen weight exceeding 15,000 kgs.
      • 8802.60.00 - Spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
      • 8803.30.00 - Other parts of aeroplanes or helicopters.
      • 8805.21.00 - Air combat simulators and parts thereof. (Finance Act 2020- wef-01July2021)
      • 8805.10.00 - Aircraft launching gear and parts thereof; deck-arrestor or similar gear and parts thereof.  (Finance Act 2020- wef-01July2021)
      • 8805.29.00 - Other (Finance Act 2020- wef-01July2021)
  • 40. Made-up fishing nets of man-made textile material of tariff No. 5608.11.00.
  • 41. Mosquito nets of tariff No. 6304.91.10.
  • 42. Milk and cream, neither concentrated nor containing added sugar or other sweetening matter of tariff Nos.— 0401.10.00 – of a fat content, by weight, not exceeding 1%; and (a) 0401.20.00 – of a fat content, by weight, exceeding 1% but not exceeding 6%.Finance Act, 2017 Effective 3rd April 2017
  • 53. Parts imported or purchased locally for the assembly of primary school laptop tablets computer, subject to approval by the Cabinet Secretary for the National Treasury, on recommendation by the Cabinet Secretary responsible for matters relating to information technology. Finance Act, 2018 Effective 1st July 2018,   (TaxLAA-No1-2020 wef-25April2020)
  • 54. Goods imported or purchased locally for use by the local film producers and local filming agents, upon recommendation by the Kenya Film Commission, subject to approval by the Cabinet Secretary to the National Treasury. Finance Act, 2016 Effective 9th June 2016
  • 55. Taxable goods purchased or imported for direct and exclusive use in the construction and infrastructural works in industrial and recreational parks of one hundred acres or more approved by the Cabinet Secretary for the National Treasury upon recommendation by the Cabinet Secretary responsible for Industrialization parks of one hundred acres or more including those outside special economic zones approved by the Cabinet Secretary for the National Treasury. Finance Act, 2016 Effective 9th June 2016, (TaxLAA-No1-2020 wef-25April2020)
  • 56. Inputs or raw materials locally purchased or imported by manufacturers of agricultural machinery and implements upon approval by the Cabinet Secretary responsible for industrialization.
  • 57. The supply of taxable goods to special economic zone enterprises, developers and operators licensed under the Special Economic Zones Act.   --- All goods including material supplies, equipment, machinery and motor vehicles, for official use by the Kenya Defence Forces and the National Police Service. Finance Act, 2016 Effective 9th June 2016 Deleted by (TLAA 2024 wef 27th December, 2024 S16)

    1. 57. All goods including material supplies, equipment, machinery and motor vehicles for official use by the Kenya Defence Forces, the Defence Forces Welfare Services, the National Intelligence Service and the National Police Service. (TLAA 2024 wef 27th December, 2024 S21)

      **Paragraphs 58 to 87 were introduced by Finance Act, 2016**
      **(Paragraph 88-93 were introduced by Finance Act, 2017 Effective 3rd April 2017)**
      (a) the goods shall be - 
      • (i) the property of and accompanying the passenger; 
      • (ii) for the personal or household use of the passenger in Kenya; and 
      • (iii) of such kinds and in such quantities as the proper officer may allow; 
      (b) notwithstanding subparagraph (c), the following goods shall not be exempt under this item - 
      • (i) alcoholic beverages of all kinds, perfumed spirits and tobacco and manufactures thereof, except as provided in subparagraphs (f) and (g); 
      • (ii) fabrics in the piece; 
      • (iii) motor vehicles except, as provided in subparagraphs (c) and (d); and 
      • (iv) any trade goods, or goods for supply or disposal to other persons; 
      (c) subject to subparagraphs (a) and (b), the following goods may be exempted under this item when imported as baggage by a person on first arrival or by a returning resident of Kenya whom the proper officer is satisfied is bona fide changing residence from a place outside Kenya to a place within Kenya - 
      • (i) wearing apparel; 
      • (ii) personal and households effects of any kind which were in his personal or household use in his former place of residence; and 
      • (iii) one motor vehicle, (excluding buses and minibuses of a seating capacity of more than 13 passengers and load-carrying vehicles of a load carrying capacity exceeding two tones) which the passenger has personally owned and used outside Kenya for at least twelve months (excluding the period of the voyage in the case of shipment): 
      Provided -
      • (i) the person has attained the age of eighteen years; and
      • (ii) where the person has previously been granted exemption under this paragraph, any subsequent exemption shall not apply unless such person has used the motor vehicle so imported into Kenya for a period of not less than four years, and tax has been paid for the motor vehicle upon which exemption had previously been granted;
      • (iii) where the returning resident has owned and use a left-hand drive vehicle for at least twelve months the person may sell the vehicle and import a right hand drive vehicle whose current retail selling price does not exceed that of the previously owned left-hand-drive vehicle, subject to the following conditions-
        • (A) the person shall provide proof of ownership and use of the previously owned left-hand-drive vehicle in the country of former residence for a period of at least one year prior to the return;
        • (B) the person shall provide proof of disposal of the previously owned left-hand-drive vehicle before changing residence; and
      • (iv) subparagraph (iii) shall only apply to residents returning from countries that operate Left Hand Drive motor vehicles;
      (d) subject to subparagraphs (a) and (b) the following goods may be exempted under this item when imported as baggage by a person whom the proper office is satisfied is making a temporary visit not exceeding three months to Kenya-
      • (i) non-consumable goods imported for his personal use during his visit which he intends to take out with him when he leaves at the end of his visit;
      • (ii) consumable provisions and non-alcoholic beverages, in such quantities and of such kinds as are, in the opinion of the proper officer, consistent with his visit; and
      • (iii) goods imported by a returning resident, being an employee of an international organization the headquarters of which are in Kenya, and who has been recalled for consultations at the organization’s headquarters;
      (e) subject to subparagraphs (a) and (b), the following goods may be exempted under this item imported as baggage by a person who the proper officer is satisfied is a resident of Kenya returning from a visit outside Kenya and who is not changing residence in accordance with subparagraphs (c) and (d) - 
      • (i) wearing apparel;
      • (ii) personal and household effects which have been in his personal or household use.
      (f) Subject to subparagraph (a) and (b), tax shall not be levied on the following goods imported by, and in the possession of a passenger-
      • (i) spirits (including liquors) or wine, not exceeding one litre or wine not exceeding two litres; 
      • (ii) perfume and toilet water not exceeding in all one half one litre, of which not more than a quarter may be perfume; and
      • (iii) cigarettes, cigars, cheroots, cigarillos, tobacco and snuff not exceeding in all 250 grams in weight:
      Provided that the tax free allowance under this subparagraph shall be granted only to passengers who have attained the age of eighteen years;

      (g) subject to subparagraphs (a) and (b) -
      • (i) the exemption granted in accordance with subparagraphs (c), (d) and (e) may be allowed in respect of baggage imported within ninety days of the date of arrival of the passenger or such further period, not exceeding three hundred and sixty days from such arrival, as the Commissioner may allow; and
      • (ii) the tax free allowances granted in accordance with subparagraph (f) shall not be allowed in respect of goods specified in the paragraph imported in unaccompanied baggage;
      (h) where any person has been granted exemption under subparagraphs (c) or (d) changes his residence to a place outside Kenya within ninety days from the date of his arrival, he shall export his personal or household effects within thirty days, or such further period, not exceeding sixty days from the date he changes such residence to a place outside Kenya, as the Commissioner may allow, otherwise tax shall become due and payable from the date of importation; and

      (i) subject to paragraphs (1) and (2), goods up to the value of three hundred United States Dollars for each traveller in respect of goods, other than goods referred to in paragraph (9), shall be exempted when imported by the traveller in his or her accompanied baggage, or upon his or her person and declared by him or her to an officer, provided that the person has been outside Kenya for a period in excess of twenty-four hours. (Tax Laws (Amendment ) Act 2018 Effective 1 July 2018 for par 99)
      • 100. Taxable goods for emergency relief purposes for use in specific areas and within a specified period, supplied to or imported by the Government or its approved agent, a non-governmental organization or a relief agency authorized by the Cabinet Secretary responsible for disaster management, where -
      (a) the goods are for use in areas where a natural disaster or calamity has occurred in Kenya; or
      (b) the goods are intended for use in officially recognized refugee camps in Kenya;
      (c) the goods are household utensils, food stuffs, materials for provision of shelter or equipment and materials for health, sanitary or educational purposes; and
      (d) the case of a natural disaster or calamity, the importation or purchase locally is made within six months or such further period, not exceeding twelve months, as the Commissioner may permit in each case.  Tax Laws (Amendment ) Act 2018 Effective 1 July 2018 for par 100)

      **Paragraphs 101-104 were added by Finance Act, 2018 Effective 1st July 2018**

      Provided that the exemption under this item shall not apply—
       a) unless the officer is returning to Kenya from a posting in a Kenyan mission abroad upon recall; 
      b) unless, in the case of an officer’s spouse, the spouse accompanied the officer in the foreign mission and is returning with the officer; 
      c) if the officer or the spouse has either enjoyed a similar privilege within the previous four years from the date of importation or has imported a motor vehicle free of duty under item 6 of Part A of this Schedule;
      d) unless the vehicle is imported within ninety days of the date of arrival of the officer or spouse or such longer period, not exceeding three hundred and sixty days from such arrival as the Commissioner may allow; and 
      e) to a State officer. 
      **(Par105-110 was introduced by Finance Act, 2019 Effective 7th November 2019)**
      **(Par112-139 was introduced by (Finance Act 2021- wef-01July2021))**
      • 112. Taxable goods, excluding motor vehicles, imported or purchased for direct and exclusive use in geothermal, oil or mining prospecting or exploration by a company granted a prospecting or exploration license in accordance with the Energy Act, 2019, production sharing contracts in accordance with the Petroleum Act, 2019, or a mining license in accordance with the Mining Act, 2016, upon recommendation by the Cabinet Secretary responsible for matters relating to energy, the Cabinet Secretary responsible for matters relating to petroleum, or the Cabinet Secretary responsible for matters relating to mining, as the case may be. (Finance Act 2021- wef-01July2021)
      • 113. Specialized equipment for the development and generation of solar and wind energy, including photovoltaic modules, direct current charge controllers, direct currentinverters and deep cycle batteries that use or store solar power, upon recommendation to the Commissioner by the Cabinet Secretary responsible for matters relating to energy. (Finance Act 2021- wef-01July2021)
      • 114. Taxable goods supplied to persons that had an agreement or contract with the Government prior to 25th April 2020 and the agreement or contract provided for exemption from value added tax: Provided that this exemption shall apply to the unexpired period of the contract or agreement and upon recommendation by the Cabinet Secretary responsible for matters relating to energy. (Finance Act 2021- wef-01July2021) Deleted by (TLAA 2024 wef 27th December, 2024 S21)
      • 115. Medical ventilators and the inputs for the manufacture of medical ventilators upon recommendation by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 116. Physiotherapy accessories, treadmills for cardiology therapy and treatment of tariff number 9506.91.00 for use by licensed hospitals upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 117. Dexpanthenol of tariff number 3304.99.00 used for medical nappy rash treatment by licensed hospitals upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 118. Medicaments of tariff numbers 3003.41.00, 3003.42.00, 3003.43.00, 3003.49.00, 3003.60.00 (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses (Finance Act 2021- wef-01July2021)
      • 119. Diagnostic or laboratory reagents, of tariff number 3822.00.00 on a backing, prepared diagnostic or laboratory reagents whether or not on a backing, other than those of heading 30.02 or 30.06, certified reference materials upon approval by the Cabinet Secretary responsible for matters relating to health   Diagnostic kits or laboratory reagents and their certified reference materials of heading 38.22 upon approval by the Cabinet Secretary responsible for matters relating to health; . (Finance Act 2021- wef-01July2021)  Amended by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 120. Electro-diagnostic apparatus, of tariff numbers 9018.11.00, 9018.12.00, 9018.13.00, 9018.14.00, 9018.19.00, 9018.20.00, 9018.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health.  Electro-diagnostic apparatus, of tariff numbers 9018.11.00, 9018.12.00, 9018.13.00, 9018.14.00, 9018.19.00, and other apparatus, Instruments and appliances of tariff numbers 9018.20.00, 9018.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)  Amended by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 121. Other instruments and appliances, of tariff number 9018.41.00, used in dental sciences, dental drill engines, whether or not combined on a single base with other dental equipment, upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 122. Other instruments and appliances, including surgical blades, of tariff number 9018.49.00, 9018.50.00, 9018.90.00 used in dental sciences upon approval by the Cabinet Secretary responsible for matters relating to health Other instruments and appliances, used in dental sciences of tariff 9018.49.00, Other ophthalmic instruments and appliances of tariff 9018.50.00 and other instruments and appliances of tariff number 9018.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021) Amended by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 123. Ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 124. Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 125. Artificial teeth and dental fittings of tariff numbers 9021.21.00, 9021.29.00 and artificial parts of the body of tariff numbers 9021.31.00, 9021.39.00, 9021.50.00 and 9021.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health  Artificial teeth of tariff number 9021.21.00, other dental fittings of tariff number 9021.29.00 and other artificial parts of the body of tariff numbers 9021.31.00 and 9021.39.00 and other appliances of tariff number 9021.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health.. (Finance Act 2021- wef-01July2021) Amended by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 126. Apparatus based on the use of x-rays, whether or not for medical, surgical or dental of tariff numbers 9022.12.00, 9022.13.00, 9022.14.00 and 9022.19.00 upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 127. Apparatus based on the use of alpha, beta or gamma radiations, whether or not for medical, surgical or dental of tariff numbers 9022.21.00, 9022.29.00, 9022.30.00 and 9022.90.00, upon approval by the Cabinet Secretary responsible for matters relating to health.  (Finance Act 2021- wef-01July2021)
      • 128. Discs, tapes, solid-state non-volatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, of tariff number 8523.80.10, including matrices and masters for the production of discs, but excluding products of Chapter 37; software upon approval by the Cabinet Secretary responsible for matters relating to health. Discs, tapes, solid-state non-volatile storage devices, “smartcards” and other media for the recording of sound or of other phenomena, whether or not recorded of tariff heading 85.23, including matrices and masters for the production of discs, but excluding products of Chapter 37 upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)   Amended by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 129. Weighing machinery (excluding balances of a sensitivity of 5 cg or better), of tariff number 8423.31.00, including weight operated counting or checking machines; weighing machine weights of all kinds upon approval by the Cabinet Secretary responsible for matters relating to health.Weighing machinery (excluding balances of a sensitivity of 5 cg or better), of tariff number 8423.10.00 purchased or imported by registered hospitals upon approval by the Cabinet Secretary responsible for matters relating to health.  (Finance Act 2021- wef-01July2021) Amended by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 130. Fetal Doppler-Pocket (Wgd-002) Pc and pulse oximeter-finger held (Gima brand) Pc of tariff number 9018.19.00 upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021) Deleted by (Finance Act 2023 wef 1st-July-2023 s37) 
      • 131. Sterilizer Dry Heat (Wgd-001-Grx-05A) Pc, autoclave steam table tops of tariff number 8419.20.00 upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 132. Needle holders and urine bags, of tariff heading 3926  (Finance Act 2021- wef-01July2021)
      • 133. Tourniquets of tariff number 3926.90.99 for use by licensed hospitals upon approval by the Cabinet Secretary responsible for matters relating to health. (Finance Act 2021- wef-01July2021)
      • 134. Taxable supplies including fish feeding and handling, water operations, cold storage, fish cages, pond construction and maintenance, and fish processing and handling, imported or purchased for direct and exclusive use on the recommendation of the relevant state department; (Finance Act 2021- wef-01July2021)
      • 135. Pre-fabricated biogas digesters. (Finance Act 2021- wef-01July2021)
      • 136. Biogas. (Finance Act 2021- wef-01July2021)
      • 137. Sustainable fuel briquettes and pellets* for household and commercial use.(Finance Act 2021- wef-01July2021)  (Finance Act 2022-wef-01-July-2022*)
      • 138. The supply of denatured ethanol of tariff number 2207.20.00. (Finance Act 2021- wef-01July2021)
      • 139.Tractors other than road tractors for semitrailers. (Finance Act 2021- wef-01July2021)
      • 140. Plant and machinery of chapter 84 and 85 imported or locally purchased* by manufacturers of pharmaceutical products or investors in the manufacture of pharmaceutical products upon the recommendation of the Cabinet Secretary responsible for matters relating health. (Finance Act 2022-wef-01-July-2022) Amended by (Finance Act 2023 wef 1st-July-2023 s37*) 
      • 141. Medical oxygen supplied to registered hospitals. (Finance Act 2022-wef-01-July-2022)
      • 142. Urine bags, adult diapers, artificial breasts, colostomy or ileostomy bags for medical use. (Finance Act 2022-wef-01-July-2022)
      • 143. Inputs and raw materials used in the manufacture of passenger motor vehicles. (Finance Act 2022-wef-01-July-2022)
      • 144. Locally Manufactured passenger motor vehicles: Provided that in this paragraph− “locally manufactured passenger motor vehicle” means a motor vehicle for the transportation of passengers which is manufactured in Kenya and whose ex-factory value comprises at least thirty percent of local content; and “local content” means parts designed and manufactured in Kenya by an original equipment manufacturer operating in Kenya. (Finance Act 2022-wef-01-July-2022)
      • 145*. Taxable goods, inputs and raw materials imported or locally purchased by a company which is-
        • (a) engaged in business under a special operating framework arrangement with the Government; and
        • (b) incorporated for purposes of undertaking the manufacture of human vaccines or other manufacturing activities including refining** ; and whose capital investment is at least ten billion shillings, subject to approval of the Cabinet Secretary for the National Treasury, on recommendation of the Cabinet Secretary for health. (Finance Act 2022-wef-01-July-2022*)  Amended by (Finance Act 2023 wef 1st-July-2023 s37**) 
      • 146.* Such capital goods the exemption of which the Cabinet Secretary may determine to promote investment in the manufacturing sector: Provided that the value of such investment is not less than two billion shillings.** Provided that the value of such investment is not less than two billion shillings, and the exemption was granted before 1st January 2024 and shall continue to apply for twelve months after this date. (Finance Act 2022-wef-01-July-2022*) Amended by (TLAA 2024 wef 27th December, 2024 S21**)
      147. Taxable supplies made to or by a school feeding programme recognized by the Cabinet Secretary responsible for matters relating to education. (Finance Act 2023 wef 1st-July-2023 s37)
      148.xxx  
      149. All imported inputs and raw materials supplied to manufacturers of agricultural pest control products upon recommendation by the Cabinet Secretary for the time being responsible for agriculture;(TLAA 2024 wef 27th December, 2024 S21)
      150. Agricultural pest control products; (TLAA 2024 wef 27th December, 2024 S21)
      151. Fertilizers of Chapter 31;  (TLAA 2024 wef 27th December, 2024 S21)
      152. Inputs or raw materials locally purchased or imported by manufacturers of fertilizer as approved from time to time by the Cabinet Secretary responsible for Agriculture.  (TLAA 2024 wef 27th December, 2024 S21)
      153. The supply of denatured ethanol of tariff number 2207.20.00.  (TLAA 2024 wef 27th December, 2024 S21)
      154. Taxable goods of Chapter 5407 and Chapter 6309 imported as raw materials for manufacture of textile products in Kenya upon recommendation of the Cabinet Secretary responsible for investments, trade and industry.  (TLAA 2024 wef 27th December, 2024 S21)

      Section B – 

      Exempt Goods on Transition

      Finance Act, 2016 Effective 9th June 2016
      (1) The following goods shall be exempt supplies for a period of three years from the commencement of this Act unless the exempt status of the supplies is earlier revoked.-
      • 2709.00.00 Petroleum oils and oils obtained from bituminous minerals, crude. 
      • 2710.12.10 Motor spirit (gasoline) regular. 
      • 2710.12.20 Motor spirit (gasoline), premium. 
      • 2710.12.30 Aviation spirit. 
      • 2710.12.40 Spirit type jet fuel. 
      • 2710.12.50 Special boiling point spirit and white spirit.
      • 2710.12.90 Other light oils and preparations. 
      • 2710.19.10 Partly refined (including topped crudes). 
      • 2710.19.21 Kerosene type jet fuel. 
      • 2710.19.22 Illuminating kerosene (IK) 
      • 2710.19.29 Other medium petroleum oils and preparations. 
      • 2710.19.31 Gas oil (automotive, light, amber, for high speed engines). 
      • 2710.19.39 Other gas oils. 
      • 2711.21.00 Natural gas in gaseous state. 
      • 2711.29.00 Other natural gas in gaseous state. 
      Finance Act, 2016 Effective 9th June 2016
      (2) Notwithstanding paragraph (1), the exemption shall be extended by a further two years from 1st September, 2016

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      NB: For deleted paragraph 63: (Finance Act 2022-wef-01-July-2022)
      Provided that notwithstanding this subparagraph, any approval granted by the Cabinet Secretary before the commencement thereof in respect of the supply of taxable goods and which is in force at such commencement shall continue to apply until the supply of the exempted taxable goods is made in full.

      63. Taxable goods for the direct and exclusive use in the construction and equipping of specialized hospitals with a minimum bed capacity of fifty, approved by the Cabinet Secretary upon recommendation by the Cabinet Secretary responsible for health who may issue guidelines for determining eligibility for the exemption.

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