Kenya police fire tear gas to disperse traders protesting import duty hike

Police used tear gas to disperse traders protesting an import duty increase, with hundreds of businesses shuttering in central Nairobi on Friday, according to a Reuters witness. The Kenya Revenue Authority announced the duty hike, set to take effect on August 20, as a measure to prevent under-declaration and undervaluation of imports, which the authority claims disadvantages businesses that comply with regulations and local manufacturers.

Traders argue that the new duty will increase the cost of clearing goods and negatively impact small businesses that benefit from consolidated shipments to lower import expenses. Muturi Kariuki, a protester, stated, "We are standing for our citizenship and our right to do business and our right to build our future." Some traders closed their businesses for safety reasons, while others did so to make their voices heard.

Police had not commented on the situation when contacted. The duty adjustment increases the minimum customs benchmark for a consolidated 40-foot container from 2.5 million Kenyan shillings ($24,700) to 3.2 million shillings ($24,700). The authority clarified that the 3.2 million shilling figure is a minimum reference point, not a fixed value for every container.

Importers with goods exceeding the new threshold must accurately declare their value and pay the corresponding duties.