KRA to slash general consolidated cargo charges by Sh500,000 to Sh2mn

The Government of Kenya has instructed the Kenya Revenue Authority (KRA) to reduce general consolidated cargo charges by Sh500,000 to Sh2 million. President William Ruto discussed this decision with small traders during a meeting at State House, according to a report on September 2.

However, the new charges will not apply to ready-made garments, footwear, and fabrics, whose costs will remain unchanged. Air cargo rates will also stay the same. This move follows recent protests by traders in Nairobi's Kamukunji, Gikomba, and Nyamakima areas who opposed the Government's revised customs valuation framework.

Earlier, on August 20, KRA had increased the minimum customs benchmark for a 40-foot container from Sh2.5 million to Sh3.2 million. The authority claimed this change aimed to tackle under-declaration and undervaluation of imports. Traders countered that the higher benchmark would raise their costs and diminish their already thin profit margins.

KRA clarified that the Sh3.2 million threshold is a risk-management reference point, not a fixed tax applied to every container. Traders are allowed to seek verification based on their goods' actual value and classification.