KRA now targets Eastleigh, Kamukunji traders in tax compliance push

A crane hoists a container at Port Reitz Station on the Mombasa-Nairobi Standard Gauge Railway (SGR) in Mombasa ON July 9, 2026. [AFP]

The Kenya Revenue Authority (KRA) has raised its customs benchmark value for consolidated cargo from Sh2.5 million to Sh3.2 million, and is now extending compliance checks to traders reselling goods in informal markets.

The revised benchmark took effect on August 20, KRA said in a media brief released on Tuesday, closing what the authority described as a transitional period following consultations with industry.

KRA uses the benchmark as a minimum reference value when calculating customs taxes on a standard 40-foot consolidated container.

Where the actual value of goods exceeds Sh3.2 million, importers must declare the higher figure and pay taxes accordingly.

"This is not about targeting small traders. It is about creating a level playing field where businesses compete fairly," said KRA.

The authority has also reminded traders that customs compliance does not end at the port. Traders who resell consolidated cargo in markets such as Eastleigh, Kamukunji, Nyamakima and Toy Market must meet business registration, electronic invoicing and income declaration requirements.

"Every business must contribute its fair share towards national development," the authority added.

The new benchmark follows weeks of pushback from small traders and freight forwarders, after an earlier directive issued on July 9 sought benchmarks as high as Sh10 million for some goods categories, triggering protests at the Port of Mombasa.

KRA subsequently negotiated with the Kenya International Freight and Warehousing Association (KIFWA) and the Kenya National Chamber of Commerce and Industry (KNCCI), agreeing to waive storage charges accrued during the standoff and to lock the new benchmark for two years.

KRA, however, now rejects that framing, saying,  "The measure should not be characterised as a dispute between the Authority and small traders," the authority said in its latest brief, noting that most traders and consolidators already comply with customs requirements.

The authority noted the previous Sh2.5 million benchmark had stood unchanged for six years, despite an understanding it would be reviewed annually.

Small traders and the MSME Alliance of Kenya had opposed the increase, a 28pc rise, warning it would squeeze working capital.

KRA maintains the Sh3.2 million figure is a floor, not a fixed price tag, and that a container carrying high-value electronics or machinery could still be assessed above that amount.

"Fair competition requires businesses to compete on the basis of efficiency, quality and innovation, rather than through avoidance of taxes," the authority explained