Mugure Ng'ethe & Associates

Mugure Ng'ethe & Associates A Cloud Based firm taking SME's to the next level through Accounting,Controls and Advisory Services.

04/08/2026

NEW DEVELOPMENT FROM YESTERDAY'S POST

KRA's brand new ACD import system has been taken to court.

There is a Kenyan tech company called Greenworld Big Data Limited.

In 2023, KRA invited the company to Times Tower for a presentation.

Greenworld's director, Mr. Munene, says the company had developed a digital cargo declaration system called ACID.

The idea was, before cargo leaves China or any other country, the exporter declares it electronically. KRA then knows exactly what is coming into Kenya before the ship even sails.

Greenworld presented the system to KRA, hoping KRA would buy it.

During the presentation, Munene says, all the top KRA officials were nodding their heads and appeared wowed by the system.

Greenworld left thinking: Baas, hii software tunauzia KRA.

Fast forward to 3rd August 2026.

KRA officially launched the Advance Cargo Declaration (ACD) system without Greenworld.

Greenworld has now sued KRA and John Mbadi, claiming that,

- KRA copied its idea without paying for it.
- And that KRA only edited "I" from ACID.

Greenworld wants the court to order one of two things:

• KRA should stop using the ACD system. Or
• If KRA continues using it, KRA should pay Greenworld a 30% royalty on the value, savings, and efficiencies generated by the system.

The court will now answer one question.

- Did KRA independently develop the ACD system, or did it unlawfully copy Greenworld's technology?

03/08/2026

KRA has introduced new critical rules for importers.

Starting today, 3rd August 2026, KRA has introduced a new import requirement for all sea cargo coming into Kenya.

If you import goods into Kenya by sea, there is a new system that you need to master.

It's called the Advance Cargo Declaration (ACD) System.

Every sea cargo destined for Kenya must be declared in this ACD system and have an ACD reference code before it leaves the exporting country.

Think of it as KRA saying: Before you send that cargo, tell me what it is you are bringing into Kenya. So I can prepare accordingly.

Here is how it works.

Before the goods are loaded onto the ship, the exporter logs into KRA's ACD system and uploads the following cargo documents:

• Draft Bill of Lading
• Commercial Invoice
• Freight Invoice
• Export Declaration

If everything is in order, KRA issues an ACD reference code.

That code must then be written on the final Bill of Lading.

Who is responsible for obtaining the ACD code?

The exporter or the shipper is responsible for obtaining the ACD code.

If you are importing from China, Mushaina, who is your seller & exporter, is responsible for obtaining the ACD code.

Every shipment gets its own unique ACD reference code. You cannot reuse an old one for another shipment.

KRA has reiterated that your freight forwarder is not allowed to obtain an ACD code for your cargo using their own account.

The Chinese exporter must apply to KRA for its own account. And submit it's company registration details, tax ID and contact details.

Shipping lines and carriers must also verify that the ACD code is valid. And ensure that it is correctly shown on the final Bill of Lading before the goods are loaded for Kenya.

Your responsibility as the Kenyan importer is to make sure that the ACD reference code has been obtained and added to the bill of lading.

Once the goods reach Mombasa port, your clearing agent shall use the same code to clear the goods.

Without a valid ACD reference, the cargo may face clearance delays, penalties, rejection, or even seizure.

KRA has stated the system is free for now. But can start charging in future.

Key takeaway.

Before your supplier loads the cargo, ask them:

- Have you obtained the ACD reference code and added it to the Bill of Lading?

Ushuru Mashinani Partners are bringing selected services closer to you, making it easier to get assistance when you need...
25/07/2026

Ushuru Mashinani Partners are bringing selected services closer to you, making it easier to get assistance when you need it.

08/07/2026

KRA has graduated to your tax accountant,

Courtesy of the Finance Act, 2026.

• Starting in January 2027, it is KRA that shall FIRST tell you, what income it believes you earned in 2026. And what taxes you shall therefore pay.

KRA will do this by generating a pre populated income tax return using the information it already has, such as:

• eTIMS data
• PAYE records
• Withholding tax records
• Plus any other information already in KRA systems

KRA shall then send you this pre-populated return by 31st January 2027.

Once you receive it, you have 2 MONTHS (February and March), and 2 OPTIONS. To either:

• Confirm it. If it is correct. Or,

• Reject & amend it. If KRA got the numbers wrong. And provide your own numbers together with supporting documents.

- If you make your amendments late. Or,
- You do not make any amendments at all,

KRA shall conclude that you have agreed with its assessment, and you shall pay the KRA generated tax bill.

After that, you can use the amended or confirmed return to file your taxes as follows:

• If you are a human being, file by April 30th 2027.

• If you have no flesh & blood (company, partnership, trust, etc), file by June 30th.
(Or the last day of the sixth month after your accounting year ends.)

One more critical mistake to watch.

• Do not assume KRA's numbers are always correct. The law has expressly given you the right to accept or reject the pre-populated return before filing.

Lessons:
• Proper bookkeeping is King in 2026.
• Mark the new tax timelines in your calendar.

Now, reread this slowly.

Bottled water and other similarly packaged waters will no longer attract excise duty.
07/07/2026

Bottled water and other similarly packaged waters will no longer attract excise duty.

Tax Amnesty is here with us.
04/07/2026

Tax Amnesty is here with us.

Lest you forget
04/07/2026

Lest you forget

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