Small-scale traders have secured a reduction in the cost of general consolidated cargo. The government has directed the Kenya Revenue Authority (KRA) to lower the charge to Sh2 million after traders raised concerns over higher customs costs.
The decision was made after President William Ruto met small traders at State House on Thursday. It follows demonstrations by traders in Kamukunji, Gikomba and Nyamakima over changes to customs valuation.
Under the new directive, the consolidated cargo charge will fall by Sh500,000. However, the revised rate will not affect ready-made garments, footwear and fabrics.
Their charges will therefore remain unchanged, while the recently negotiated air cargo rates will also continue to apply.
The move comes after KRA raised the minimum customs benchmark for a consolidated 40-foot container. The authority increased it from Sh2.5 million to Sh3.2 million from August 20. KRA said the higher benchmark was meant to curb under-declaration and undervaluation of imported goods. However, traders opposed the move because they feared higher costs would further reduce their profit margins.
The traders consequently closed some businesses and took to the streets to protest the new valuation requirements. Their concerns have now prompted the government to review the consolidated cargo charge. The Sh3.2 million benchmark, however, remains a customs reference for valuation. It is not a fixed tax imposed on every container.
KRA has maintained that importers can seek verification based on the actual value and classification of their goods. This means traders whose goods have different values can have their consignments assessed accordingly.
The government’s latest decision is therefore expected to ease the pressure on small-scale traders who rely on consolidated shipments to reduce shipping costs. At the same time, the customs authority will continue using valuation measures to protect revenue and address under-declaration.