The Kenya Revenue Authority (KRA) has moved to clarify its new KSh3.2 million benchmark for consolidated cargo after small-scale traders announced plans for nationwide demonstrations.
KRA said the KSh3.2 million figure should not be confused with the actual amount of tax an importer is required to pay.
According to the tax authority, the figure is a minimum yield used as a reference under a simplified customs clearance system for containers carrying commonly imported goods.
KRA explained that the actual tax payable depends on factors such as the type of goods, their value and their customs classification.
The simplified arrangement allows several small traders to combine their goods in one container, making the clearance process easier and reducing the paperwork involved in processing individual consignments.
The authority said the minimum yield was last reviewed during the 2022/2023 financial year. Changes in exchange rates, freight costs and tax laws were among the factors considered when reviewing the benchmark.
After consultations with industry players, traders were given a one-month grace period to prepare for the revised requirement.
The new KSh3.2 million benchmark, which replaced the previous KSh2.5 million figure, took effect on August 21, 2026.
KRA has also given traders who do not wish to use the simplified system other options. They can request physical inspection of their containers so that taxes are calculated based on the actual goods, their value and classification.
Traders can also separate their cargo into individual consignments and make separate customs declarations.
Despite the clarification, small-scale traders have maintained their opposition to the new benchmark. They have accused the government of increasing the cost of doing business and announced plans to close their businesses and hold demonstrations across the country.
The traders are demanding that KRA return the minimum benchmark to KSh2.5 million.
The dispute comes as small businesses continue to face rising operating costs, with traders warning that higher import-related expenses could eventually affect the prices paid by consumers.
KRA, however, maintains that the revised benchmark is intended to simplify customs clearance while ensuring that the correct taxes are collected from imported goods.