KRA Sets Record Straight on Ksh 3.2M Cargo Rule as Traders Plan Nationwide Protests

The Kenya Revenue Authority (KRA) has clarified concerns about a new Customs benchmark used to assess consolidated cargo imported by small-scale traders as traders prepare for nationwide protests on Friday, August 28, 2026.

Traders have threatened to shut down their businesses and hold street demonstrations over the increase in the minimum customs value for shared cargo containers, which has risen from Ksh 2.5 million to Ksh 3.2 million.

The benchmark is used by KRA as a reference when clearing containers carrying goods belonging to several small-scale traders. However, KRA says the Ksh 3.2 million figure does not mean every trader will be taxed as if their goods are worth Ksh 3.2 million.

The protests are expected to affect several major trading centres, including Gikomba, Kamukunji and Nyamakima. Demonstrators are also expected to march to KRA headquarters at Times Tower in Nairobi.

However, the Eastleigh Business Community has distanced itself from the planned strike.

KRA Explains the Ksh 3.2 Million Benchmark

In a statement issued on Thursday, August 27, KRA said the Ksh 3.2 million minimum yield does not represent the actual tax liability for every container.

The authority explained that the minimum yield is a risk-management reference used under a simplified customs clearance arrangement for consolidated cargo.

Also Read: KRA Issues Fresh Clarification on Tax Amnesty and Outstanding Debt

KRA said the arrangement is meant to help small-scale traders who combine their goods in shared containers to reduce shipping and clearance costs.

According to the authority, the minimum yield provides a reference for identifying containers that can be cleared with minimal Customs intervention.

KRA said the minimum yield was last reviewed in the 2022/23 financial year and that changes in exchange rates, freight charges and tax laws had made a review necessary.

The revised minimum yield of Ksh 3.2 million took effect on August 21, 2026, following a one-month grace period granted after industry stakeholders requested more time to prepare for its implementation.

How Traders’ Taxes Are Determined

KRA said the actual customs tax payable is determined by factors including the nature, value, and classification of the goods.

The authority added that where traders provide proper commercial documents, Customs assesses the goods based on their declared transaction value, subject to legal and risk-management requirements.

Also Read: Why KRA Raised Cargo Benchmark Amid Traders’ Shutdown Threat

Traders who do not want to use the simplified arrangement can request Customs to verify their containers and determine the applicable taxes based on the actual goods.

They can also choose to de-consolidate their cargo, allowing individual importers to make separate declarations and pay taxes directly to KRA based on their respective goods.

KRA Responds to Traders’ Concerns

KRA said it recognises the importance of cargo consolidation to small-scale traders, particularly because it allows them to pool shipments and access more affordable logistics.

The authority said it had consulted industry stakeholders before reviewing the minimum yield and remains committed to facilitating legitimate trade.

KRA also said it would continue working with small-scale traders while taking measures to prevent abuse of customs procedures and protect government revenue.

The clarification comes as traders across the country prepare to close their businesses and take to the streets on Friday in opposition to the new customs benchmark. Customs benchmark.

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Photo of a cargo ship docking at a Kenyan port. PHOTO/ KPA