The Kenya Revenue Authority (KRA) has clarified its new Sh3.2 million benchmark for consolidated cargo. The authority says the figure is a risk-management reference and not a fixed tax bill for small-scale traders.
KRA said cargo consolidation remains important for small traders. It allows them to pool shipments and access more affordable shipping services. The authority also said Customs valuation is guided by law. Import duties are assessed using the transaction value of the goods when proper commercial documents are provided.
KRA introduced the revised minimum yield after reviewing the changing trading environment. The review considered changes in exchange rates, freight charges and tax laws.
The previous minimum yield had remained unchanged since the 2022/23 financial year. KRA said the changes in the business environment made a review necessary. The authority conducted the review in consultation with industry stakeholders. It also granted traders an additional one-month grace period after they requested more time to prepare.
The revised minimum yield of Sh3.2 million therefore took effect on August 21, 2026. However, KRA stressed that the amount does not determine the actual tax owed by an importer. “The minimum yield is not a representation of the actual tax liability for the goods contained in a container,” KRA said in part of the statement.
Instead, the benchmark helps Customs identify containers that may qualify for simplified clearance. It is also used as a risk-management tool under the cargo consolidation system. KRA said traders whose goods exceed the benchmark must still declare their actual value. They must then pay the applicable duties and taxes based on the nature and value of their goods.
The authority also explained why the benchmark was revised. It said the cost of goods, insurance and freight affects the customs value of imports. At the same time, KRA said the new figure is not intended to punish small businesses. Rather, it aims to address risks linked to cargo under-valuation and misdeclaration.
“The revised minimum yield of Kes. 3.2M therefore took effect on 21 August 2026,” the authority stated in the press statement.
KRA said the system provides a simpler clearance option for small-scale traders. It also reduces the need to assess numerous small consignments individually. The authority further said it remains committed to facilitating legitimate trade. At the same time, it will continue protecting government revenue and promoting a fair business environment.