The revenue agency had defended the higher benchmark as part of efforts to curb under-declaration and undervaluation of imports The government has bowed to pressure from small-scale importers, with President William Ruto proposing to cut the customs benchmark for general consolidated cargo to Sh2 million.
The increase, which took effect in August, triggered protests among small traders who rely on consolidated shipments to import relatively small quantities of goods. Tensions escalated on August 28 when police used tear gas to disperse traders demonstrating in Nairobi, forcing several businesses in the city centre to close.
The revenue agency had defended the higher benchmark as part of efforts to curb under-declaration and undervaluation of imports, arguing that the practices undermine compliant businesses and local manufacturers. The taxman maintained that the benchmark was a reference point for customs valuation and not a fixed price at which every consignment would be assessed.
Under the agreement reached at the meeting, KRA will reduce the benchmark for general consolidated cargo from Sh2.5 million to Sh2 million. Ruto also directed that ordinary goods be treated separately from high-value merchandise, rather than placing an entire container in a higher valuation category.
The concession will not apply to all goods. Existing rates for ready-made garments, footwear and fabrics will remain unchanged, while newly negotiated rates for air cargo will continue to apply. The government will also remove the Advance Cargo Declaration requirement and have KRA publish an exclusion list specifying goods that will not qualify for the general consolidated cargo arrangement.