The Kenya Revenue Authority (KRA) has raised the minimum reference value for consolidated 40-foot containers. The move could increase the tax base for goods imported through cargo-consolidation arrangements.
The new benchmark is Sh3.2 million, up from Sh2.5 million, representing a 28% increase. It took effect on August 20. KRA says the revision is aimed at curbing under-valuation while protecting traders who correctly declare their goods. It is not intended to target small businesses that share container space to reduce shipping costs.
The Sh3.2 million figure is not a flat valuation for every consolidated container. Instead, importers whose goods are worth more must declare the actual value and pay the applicable duties and taxes.
KRA introduced the change after consultations with industry stakeholders. These included the Kenya International Freight and Warehousing Association, small traders and cargo consolidators.
The authority said the previous benchmark had remained unchanged for about six years, despite changes in economic conditions. Import values and cargo types have also changed during that period.
KRA is now seeking to address several forms of customs-related tax evasion. These include under-valuation, under-declaration, misclassification and misdescription of goods.
The authority is also targeting the concealment of high-value goods. It has raised concerns about the growing use of cargo consolidation by larger importers to reduce their tax obligations.
However, the new benchmark does not mean every consolidated container will automatically be valued at Sh3.2 million. Importers must still declare the actual value of goods when that value exceeds the reference level.
The latest measure is therefore part of KRA’s wider effort to strengthen customs compliance. At the same time, the authority says the change should protect compliant traders while addressing practices that reduce tax collections.