Demonstrations were witnessed in Nairobi’s Central Business District on Friday, August 28, 2026, as small-scale traders took to the streets to protest new customs valuation rules introduced by the Kenya Revenue Authority (KRA).
At the centre of the debate is a KSh 3.2 million benchmark, which has sparked concerns among traders who fear it could translate into higher import taxes.
However, the benchmark is not a tax or customs duty rate. Instead, it represents the minimum expected yield per 40-foot container of consolidated general cargo.
The KRA says the figure is primarily a risk-management reference point, used to identify containers that qualify for simplified clearance with minimal customs intervention. It is therefore not intended to serve as a flat, fixed tax bill for every container.
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For clarity, the KSh 3.2 million figure does not represent the exact tax liability for every container. Importers whose goods exceed or fall under specific parameters still need to ensure accurate declarations. Therefore, it is incorrect to allege that taxes on consolidated general cargo have been increased!
It was introduced first in 2019 as a flat-rate of 200 shillings per kilogram. Later in March 2023, it was modernized to a bench mark rate, more aligned to World Trade Organization guidelines. The current concerns have glossed over the big, broader issues: tax transparency, accurate valuation, correct classification, speed and efficiency of clearance, and fairness among traders.
A trader who considers that the simplified arrangement does not appropriately reflect the goods being imported is not without recourse. Traders may request verification of their goods, with the applicable taxes determined based on the actual goods, their customs value and the correct tariff classification.
The Boma shed at the Kenya Railways headquarters, and the National Cargo De-consolidation Centre (NCDC) at the Nairobi Inland Container Depot (ICD) were created to facilitate deconsolidation.
The whole scheme was to allow small-scale traders to pool their goods together, bypass standard clearing agents, and pay the flat weight, later container-based duty efficiently.
But it is also subject to abuse. Larger traders found a mechanism to bring in very high value goods, while benefiting from the low benchmark rate. They are the most opposed to deconsolidation.
