KRA Makes Major Change to Customs Benchmark for Containerised Cargo

The Kenya Revenue Authority (KRA) has raised the minimum customs benchmark for general containerised consolidation cargo from Ksh2.5 million to Ksh3.2 million per consolidated 40-foot container.

According to a notice dated August 25, the revised benchmark took effect on August 20, 2026, following consultations between KRA, the Kenya International Freight and Warehousing Association (KIFWA), small traders, cargo consolidators and other private-sector stakeholders.

KRA noted that the adjustment is intended to strengthen customs valuation, protect government revenue and create a fairer trading environment for compliant businesses.

“Kenya Revenue Authority (KRA) has implemented the revised Customs Minimum Benchmark for general containerised consolidation cargo, with the benchmark adjusted from KSh2.5 million to KSh3.2 million, effective 20 August 2026,” read part of the notice.

KRA Raises Customs Benchmark to KSh3.2 Million

The Authority said the measure would also address the misuse of cargo consolidation arrangements, which it said had been exploited through practices such as undervaluation, under-declaration, misdescription, misclassification and concealment of high-value goods.

“This is not about targeting small traders. It is about creating a level playing field where businesses compete fairly,” KRA stated.

In addition, KRA clarified that the Ksh3.2 million figure is a minimum reference point and not a flat customs value for every 40-foot container.

It highlighted that a container may contain goods whose actual customs value is higher than the benchmark, including electronics, machinery and specialised equipment.

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Therefore, where the actual value of the goods exceeds Ksh3.2 million, importers are required to declare the correct value and pay the applicable customs taxes.

What the Benchmark Mean

Cargo consolidation provides small traders with an avenue to import goods by combining several shipments in a single container, helping to reduce the cost of international trade.

However, KRA said it had identified cases where consolidation arrangements were being used to facilitate customs non-compliance.

The Authority also raised concerns over high-value goods, including smartphones, being deliberately declared at lower values to reduce customs duties and taxes.

KRA further noted that some larger importers had begun using consolidation arrangements to reduce their tax obligations, which it said could disadvantage businesses that comply with customs requirements.

Why KRA Increased the Benchmark

According to KRA, the previous Ksh2.5 million benchmark had remained unchanged for about six years.

The Authority said the previous benchmark was introduced following consultations with small traders and the government, with an understanding that it would be reviewed upwards after one year.

However, the review did not take place despite changes in economic conditions, import values and the nature of goods entering the country.

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KRA said the new KSh3.2 million benchmark therefore provides a more current and predictable reference point for customs administration.

The Authority said the revised benchmark would help prevent imported goods from entering the Kenyan market at artificially low prices as a result of inaccurate declarations.

According to KRA, such practices can give non-compliant importers an unfair advantage over local manufacturers whose businesses comply with tax and other regulatory requirements.

The Authority said the measure was therefore aimed at promoting fair competition between imported and locally manufactured goods.

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An image showing KRA Offices. Photo/KRA