Ruto directs KRA to list goods excluded from cargo consolidation after trader shutdown

NAIROBI, Kenya – President William Ruto has instructed the Kenya Revenue Authority (KRA) to compile a definitive list of items ineligible for inclusion in cargo consolidation shipments, in an effort to end the ongoing dispute that led to the temporary closure of businesses in Nairobi's Central Business District. During a gathering at State House, Ruto also emphasized the necessity of maintaining an accurate register of cargo consolidators and made it accessible to traders, thereby reducing ambiguity surrounding the revised customs benchmark.

The President requested the KRA to specify high-value products that are not eligible for consolidation, stressing the importance of transparency in the application of the new customs regulation, which traders claim has led to increased import costs. Ruto further emphasized that KRA should identify authorized consolidators, enabling traders to ascertain which entities are legally permitted to manage their cargo.

The President championed cargo consolidation as a viable option for small enterprises unable to afford the expense of importing entire containers independently, asserting that this system aids in reducing the financial burden of international trade. The directive came in response to protests by traders in Kamukunji, Gikomba, and Nyamakima on August 28, where businesses were temporarily shut down and demonstrators marched through the CBD to voice their disapproval of KRA's revised customs benchmark.

This benchmark, which was raised from Sh2.5 million to Sh3.2 million on August 20, represents an increase of 28 percent.

Traders contended that the higher threshold would exacerbate their already limited profit margins and fuel concerns over increased import costs. They demanded that the previous benchmark be reinstated and advocated for further dialogue with KRA. In addition, Ruto directed government bodies to decrease expenses related to managing consolidated cargo, stating that the government aims to alleviate unnecessary financial burdens on small traders.

The President also hinted at stricter measures against foreign traders operating in sectors designated for Kenyan citizens, pledging to pursue legal actions to safeguard local businesses from unfair competition. He asserted that bolstering investor confidence would foster investment, rather than allowing foreign traders to directly compete with Kenyan small businesses.