KRA says Sh3.2m cargo benchmark not a fixed tax for traders

Nairobi, Kenya - The Kenya Revenue Authority (KRA) has clarified that the recently increased Sh3.2 million minimum yield for consolidated cargo is not a fixed tax on every container. Instead, it serves as a risk-management benchmark to identify shipments that meet specific criteria for customs clearance with minimal intervention.

The real tax amount, the KRA explained, depends on the nature, value, and classification of the goods within each shipment. This clarification follows concerns raised by small-scale traders who argued that the higher benchmark would increase their import costs and reduce business margins. The increase of 28 percent, or Sh700,000, has sparked protests in Nairobi’s Kamukunji, Gikomba, and Nyamakima markets, where traders threatened to cease operations on August 28, 2026.

Cargo consolidation enables multiple traders to combine their goods into a single container, allowing them to share shipping, logistics, and clearance expenses instead of importing individual containers. The KRA explained that the minimum yield is a reference point under the simplified customs clearance system, helping Customs determine if a container carrying common goods qualifies for expedited clearance.

Small traders can still benefit from consolidation while avoiding the paperwork and administrative burden associated with individual shipments. The KRA stated that the tax liability remains contingent on the imported goods, their transaction value, and correct customs classification, along with other elements like freight and insurance.

The revised benchmark came after a review of the operating environment, taking into account shifts in exchange rates, freight charges, and national and East African Community tax laws. The authority conducted the review in consultation with industry stakeholders and granted a one-month grace period for traders to adjust to the new standard, which took effect on August 21, 2026.