By Ken Muthomi - Reporter
Kenya, September 02, 2026 - President William Ruto has directed the Kenya Revenue Authority review of the Ksh.3.2 million customs clearance charge for consolidated cargo following resistance from trades.
Speaking in State House on Wednesday during a meeting with Micro, Small and Medium Enterprises (MSME), the Head of State said that containers carrying ordinary goods continue to pay Ksh.2 million.
On the other hand Ruto said that those containing high-value goods should undergo further assessment based on the value of the items inside.
Ruto said that the move is aimed at addressing concerns raised over the increased customs clearance cost. He, however, maintained that all Kenyans must also play a part in tax contributions to ensure seamless government operations.
The President has also directed KRA to provide traders with a list of high-value items that would not qualify for the consolidation arrangement.
"If there are no high-value items, we should reduce the price to KSh2 million, and if there are high-value items, they should be removed. For containers that do’t have high value items, the prices should not be changed should be changed, but those that have, it should be first determined what is inside,” Ruto stated.
“Let us first agree that all of us have to contribute. The problem is that the people at KRA are saying Ksh.2.5 million. The assumption is that the goods in a container are worth around Ksh.6 million, hence the Ksh.2.5 million in taxes. But what happens when the goods are worth Ksh.20 million? Should the person still pay only Ksh.2.5 million? I am willing to go along with what you have proposed, but I also want us to reach an agreement on this,” he added.
The development comes barely a week after small-scale traders took to the streets protesting a sharp increase in the customs valuation benchmark for imported goods.
At the centre of their anger is KRA’s decision to raise the minimum benchmark for general containerised consolidated cargo from KSh 2.5 million to KSh 3.2 million, an increase of KSh 700,000. The new threshold took effect on August 20.
“We want the government to listen to us. KRA should listen to us and allow us to continue with the benchmark of 2.5. They have already increased it to 3.2, which is not possible for businesses given the state of Kenya’s economy,” one of the traders said in the protests.
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