KRA says no business tax increase amid Nairobi traders’ protests

The Kenya Revenue Authority (KRA) has clarified that it has not introduced a new tax on businesses, despite protests from small-scale traders in Nairobi's Central Business District over a higher customs benchmark for imported goods. On Friday, August 28, 2026, traders marched from the Archives to Times Tower, aiming to deliver a petition to KRA.

Businesspeople from wholesale markets like Kamukunji, Gikomba, and Nyamakima argued that the revised valuation has raised import costs, narrowed profit margins, and jeopardized jobs. The dispute stems from KRA's decision to raise the minimum value, or customs benchmark, for a 40-foot container of general consolidated cargo from Ksh2.5 million to Ksh3.2 million, which came into effect on August 21 after a one-month grace period.

KRA's Customs and Border Control Commissioner Lilian Nyawanda explained that the Ksh3.2 million figure is a minimum expected from a 40ft container based on commonly imported items, not a tax. KRA's role is to ensure correct value declarations and tax payments, not to set taxes. The Ksh3.2 million benchmark is a risk-management reference under a simplified clearance arrangement for small importers to share containers.

The previous benchmark was deemed outdated due to changes in exchange rates, freight costs, and tax laws and had allowed some cases of undervaluation or concealment of high-value goods. Traders demand the reinstatement of the Ksh2.5 million benchmark, while KRA maintains that it is a customs valuation tool.