An Overview of Kenya’s Trade Remedies Act (2024)

Introduction

A common thread among the above agreements is that WTO members are required to establish a competent investigations authority domestically to be able to investigate and apply any of these trade remedy measures. Hence in compliance with this requirement, and upon realization that trade remedies may be a useful policy tool to shield her domestic industries from unfair trade practices, Kenya enacted the Kenya Trade Remedies Act in 2017. Below are some of the important provisions of the Act.

Kenya Trade Remedies Act

The Kenya Trade Remedies Act was enacted on the 21stJuly 2017 and came into force on 16thAugust 2017. The purpose of the law as stated in preamble is to provide for the establishment of the Kenya Trade Remedies Agency (KETRA), to investigate and impose anti-dumping, countervailing and trade safeguard measures.

Section 3 of the Act establishes the Kenya Trade Remedies Agency whose key functions include investigating and evaluate allegations of dumping and subsidization of imported products in Kenya as well as investigating and evaluating requests for application of safeguard measures on any product imported in Kenya.

Anti-Dumping, Countervailing and Safeguard Measures in Kenya

Section 23 of the Act provides for the power to impose anti-dumping, countervailing and safeguard measures and powers to investigate, evaluate and adjudicate procedures. A countervailing measure is a special duty levied for purpose of offsetting any subsidy bestowed, directly, or indirectly, upon the manufacture, production or export of any merchandise. The Cabinet Secretary is in a case of subsidized goods imported in Kenya, mandated to issue a countervailing duty in an amount equal to or less than the amount of subsidy on the imported goods.

Dumping is the introduction of a product into the commerce of the country at an export price that is less than its normal value. The dumping margin means the difference between the export price and the normal value as it results from the comparison of the two. Under the Kenya’s Trade Remedie Act, the Cabinet Secretary is expected to impose, in the case of goods dumped in Kenya, an anti-dumping duty in an amount equal to or less than the margin of dumping of the imported goods.

Investigations and Enforcement under the Kenya's Trade Remedies law

The KenyanAct allows any person to make an application for the conduct of the investigation or evaluations of alleged dumping or subsidized exports in Kenya or the conduct of investigation or evaluation of imports that have caused or threaten to cause serious injury to an industry in Kenya. Investigation officers are to be appointment by the KETRA Board to perform investigation duties and given power of entry and to search under warrants any premises that are within the jurisdiction of that court issuing the warrant.

Upon finishing of the investigations , the KETRA has the power to recommend the application of the Anti- Dumping duty when a case of dumping has been proved or countervailing when a case of subsidies has been established. The power to levy these duties is bestowed on the Kenya Revenue Authority(KRA) through its customs procedures.