Traders to protest over Sh700,000 increase in container customs benchmark

Nairobi’s Kamukunji, Gikomba, and Nyamakima markets are bracing for a potential nationwide shutdown on August 28, as small-scale traders voice their discontent with a new Kenya Revenue Authority (KRA) customs valuation benchmark. The benchmark, which increased from Sh2.5 million to Sh3.2 million for a 40-foot container of consolidated cargo, takes effect on August 20 and adds a hefty Sh700,000 to the assessment of imported goods.

For traders reliant on shared containers, particularly those importing from China, the 28 percent hike represents a significant increase in import costs. This hike threatens to erode profit margins, forcing some businesses to raise prices or curtail operations. One Kamukunji trader, who has been in the market for 15 years, lamented that the new benchmark is already straining small businesses.

“We have been thriving in this market for 15 years. Now we are told we have to pay Sh3.2 million to import a container from China,” the trader said.

Another trader called for urgent government intervention, warning that the additional cost could leave businesses with little room to generate a profit. “With the Sh700,000 added, there will be no profit,” the trader stated, urging relevant agencies to address the issue. The traders argue that this increase disproportionately impacts micro, small, and medium enterprises that operate with limited capital and rely on stable import costs.

The KRA’s decision aims to enhance customs valuation and curb under-declaration and misclassification of imported goods. However, the new Sh3.2 million benchmark is merely a minimum reference point, not a flat valuation imposed on all consolidated containers. Importers remain responsible for declaring the actual value of their goods and paying the appropriate taxes.