Police deployed as Nairobi traders protest increased taxes on imports

Nairobi, Kenya - Police have been deployed to key locations in the city's central business district as traders plan to protest against increased taxes on imported goods. The security measure comes as traders gather in anticipation of a march to the Kenya Revenue Authority's offices to voice their concerns over a revised customs valuation benchmark.

The controversy began when the revenue body decided to raise the minimum yield used in its simplified clearance arrangement for consolidated cargo from Sh2.5 million to Sh3.2 million. This 28 percent increase has left small-scale importers unsettled, particularly those who pool their merchandise in shared containers, especially from China.

Businesses in the CBD remained closed on Friday as traders joined a boycott against the higher benchmark, fearing it could lead to higher retail prices or force businesses to scale down operations. The protests have disrupted business activity, with closed shops reported along Moi Avenue, Kenyatta Avenue, and Tom Mboya Street. Traders intend to deliver their grievances directly to the KRA leadership, pledging to continue their protests until they are heard.

KRA maintains that the minimum yield is a risk-management benchmark and not a fixed tax, adding that the actual customs liability depends on various factors, including the nature, value, and classification of goods in a shipment.