KRA Responds After Small-Scale Traders Protest Over New Tax Measures

The Kenya Revenue Authority (KRA) has addressed concerns from small-scale traders regarding the taxation of consolidated cargo, outlining the process for assessing customs duties and explaining the introduction of a minimum yield for certain containers. In a statement dated August 27, 2026, KRA acknowledged the importance of cargo consolidation for small-scale traders and emphasized that its customs procedures aim to facilitate legitimate trade while protecting government revenue.

The valuation of imported goods is governed by law, and customs duty is assessed based on the transaction value of the goods, in line with international valuation agreements. Small-scale traders often use consolidation to simplify shipping and customs tax payment, leading to the introduction of a minimum yield test to streamline the clearance process.

The minimum yield, which was last reviewed in 2022/23, was raised to Sh3.2 million on August 21, 2026, with a one-month grace period granted for traders to prepare for the new requirement. KRA clarified that the minimum yield is a risk-management reference and not a representation of the actual tax liability for the goods in a container, with the actual tax payable depending on the nature, value, and classification of the goods.

Brief written by urgent.news from KahawaTungu's own syndicated text. Machine-written — may contain errors; check the original before relying on it.