KRA Issues Fresh Update on Consolidated Cargo Fee Following Ruto’s Directive

The Kenya Revenue Authority (KRA) is set to roll out a tax education programme for cargo consolidators and small traders as the government moves to implement a Presidential Directive on consolidated cargo.

According to a statement dated September 11, the programme will seek to improve traders’ understanding of their tax obligations and strengthen compliance across the trade sector.

“KRA will immediately roll out a comprehensive tax education programme for cargo consolidators and small traders to strengthen understanding of and compliance with their tax obligations,” read part of the statement.

KRA Engages Cargo Consolidators

The move follows an engagement between KRA officials and cargo consolidators on the implementation of the directive and ways of supporting Kenyan traders.

KRA stated that the meeting brought together KRA leadership and cargo consolidators to discuss how the Presidential Directive on consolidated cargo will be implemented.

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The engagement was led by Commissioner for Micro & Small Taxpayers George Obell and Commissioner for Customs and Border Control Dr Lilian Nyawanda.

“Today, KRA leadership engaged cargo consolidators on implementing the Presidential Directive on consolidated cargo and support for Kenyan traders,” KRA stated.

The Authority said the discussions focused on the modalities of implementing the directive, with participants agreeing to continue consultations in the coming weeks.

Technical Team to Drive Implementation

As part of the next steps, KRA has constituted a Technical Working Group to drive the implementation of the resolutions agreed upon during the meeting.

The authority said the initiative reflects its commitment to working closely with traders and simplifying compliance across the trade ecosystem.

This development comes shortly after President William Ruto announced a series of measures aimed at reducing the cost of doing business for Kenyan traders following concerns over the taxation, clearance and handling of consolidated cargo.

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Under the agreement, the benchmark for general consolidated cargo was reduced to Ksh2 million, from the previous Ksh2.5 million, while existing rates for ready-made garments, footwear and fabrics, as well as newly negotiated rates for air cargo, remained unchanged.

The government also directed KRA to remove the Advance Cargo Declaration requirement and develop an exclusion list specifying goods that would not qualify for clearance under the general consolidated cargo system.

In addition, cargo consolidators were required to undergo fresh vetting and registration by KRA and provide details of the individual traders and importers whose goods they handle.

The measures followed disagreements between traders and KRA over the applicable cargo benchmark, with traders raising concerns that the previous requirements were increasing the cost of doing business and affecting small and medium-sized enterprises.

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A photo of KRA offices. PHOTO/KRA