Small-Scale Traders Protest KSh3.2 Million Cargo Clearance Benchmark

Small-scale traders in Nairobi have taken to the streets to protest the Kenya Revenue Authority's (KRA) revised customs benchmark for consolidated cargo, saying the increase will raise the cost of doing business and threaten the viability of their enterprises.

The protests took place on Friday, August 28, 2026, with traders from major commercial centres including Kamukunji, Gikomba and Nyamakima closing some businesses and marching through Nairobi's Central Business District. The demonstrations were directed towards KRA's headquarters at Times Tower. 

The protests followed KRA's decision to increase the minimum customs benchmark for a 40-foot container carrying general consolidated cargo from KSh2.5 million to KSh3.2 million, representing a KSh700,000, or 28 per cent, increase. 

Why traders are opposing the new benchmark

Small-scale importers, many of whom bring merchandise from countries such as China through shared containers, argue that the higher benchmark will increase their import and clearance costs.

Traders say the additional burden could reduce already thin profit margins and eventually force them to increase the prices of imported goods.

The new measure has also prompted some traders to threaten continued demonstrations and disruption of cargo clearance until KRA reviews the policy. The traders have called for consultations with the authority and a reduction of the new benchmark. 

For businesses that depend on consolidated shipments, the dispute has broader implications because higher import costs can affect the prices of merchandise sold to consumers.

KRA says KSh3.2 million is not a flat tax

KRA has defended the revised benchmark, saying it was introduced to address undervaluation, under-declaration and misclassification of imported goods, practices the authority says lead to revenue losses and create unfair competition for compliant businesses. 

The authority has also clarified that KSh3.2 million is a reference point and not a fixed tax bill that every importer must pay.

According to KRA Commissioner for Customs and Border Control Lilian Nyawanda, customs officials can verify the actual contents, classification and value of goods where an importer believes the benchmark does not accurately reflect their consignment. The final taxes would then be based on the applicable assessment. 

KRA has said the revised system is intended to ensure greater compliance while protecting businesses that declare their goods accurately.

The disagreement nevertheless continues, with traders maintaining that the new benchmark will disproportionately affect small businesses that rely on consolidated cargo to keep import and logistics costs manageable.

Police disperse protesters

The Friday demonstrations disrupted business in parts of Nairobi's CBD, with several shops remaining closed during the protests.

Police deployed tear gas to disperse some of the demonstrators as they attempted to march towards KRA offices. 

The traders have indicated that they could continue protesting until their concerns are addressed, putting further pressure on KRA to engage with the small-business community.

The dispute comes at a time when businesses are already facing pressure from rising operating costs, making the outcome of the discussions between KRA and traders significant for both importers and consumers.