Section of Nairobi traders shut shops over Sh3.2m KRA customs benchmark
Videos circulating online showed closed shops along major commercial streets including Moi Avenue, Kenyatta Avenue and Tom Mboya Street, while some traders demonstrated against the new benchmark.
Nairobi traders went on strike and protested in the streets on Friday over a new customs benchmark set by Kenya Revenue Authority (KRA) that increased the minimum shipment value from Sh2.5 million to Sh3.2 million. Videos showed closed shops on busy streets like Moi Avenue and Kenyatta Avenue, as some traders demonstrated against the 28% hike, which adds Sh700,000 to the previous benchmark.
This affects small-scale importers who consolidate shipments from China with other traders to share costs, arguing the higher threshold will increase operating costs and thin margins. A long-time Kamukunji trader said the previous system was already straining businesses, while another warned that the additional amount could leave no profit room.
KRA clarified that the new Sh3.2 million is not a fixed tax but a risk-management benchmark for simplified customs clearance, based on the nature, value, and classification of goods, not the actual tax liability. The revised benchmark, effective August 21, follows changes in exchange rates, freight costs, and tax laws, and addresses issues like undervaluation and misclassification of imports.
Traders demand government intervention, while KRA insists taxes should still be based on the customs value of imported goods.
Written by urgent.news from Capital Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- KRA says Sh3.2m cargo benchmark not a fixed tax for traders capitalfm.africa
