The government has directed the Kenya Revenue Authority (KRA) to reduce overall taxes on consolidated cargo to between KSh 500,000 and KSh 2 million following a meeting between President William Ruto and small-scale traders at State House.
However, the new tax rates will not apply to ready-made clothing, footwear, and textiles, which will retain their existing charges. The recently adjusted duty rates for air freight will also remain in force.
The move comes days after traders from Kamukunji, Gikomba, and Nyamakima shut down their businesses and staged protests across Nairobi against the government’s revised customs valuation framework.
KRA had previously raised the minimum customs clearance fee for a 40-foot consolidated container from KSh 2.5 million to KSh 3.2 million starting August 20. The authority defended the increase as a necessary measure to curb under-declaration and the undervaluation of imported goods. Traders, on the other hand, argued that the steep hike would drastically inflate operational costs and erode their already thin profit margins.
Addressing the controversy, KRA clarified that the KSh 3.2 million figure serves as a risk-management benchmark rather than a fixed tax applied uniformly to every container, noting that importers retain the option to request custom duty verification based on the actual value and classification of their items.
