KRA defends Sh3.2 million minimum yield for consolidated cargo amid planned protests

The Kenya Revenue Authority (KRA) has defended its decision to raise the minimum yield for containers carrying general consolidated cargo to Sh3.2 million, saying the measure is aimed at keeping customs valuation in line with prevailing economic and trading conditions.

This comes amid planned protests on August 28 by cargo handlers and the importers. Traders plan to camp at the tax man offices in Nairobi in a move that may paralyze operations at large.

KRA said it recognises the importance of cargo consolidation, particularly for small-scale traders who pool shipments to access more affordable logistics and simplify customs clearance.

The authority said customs valuation of imported goods is governed by Section 122 and the Fourth Schedule of the East African Community Customs Management Act, under which duty is assessed based on the transaction value of goods.

KRA said where an import declaration is supported by proper commercial documentation, Customs assesses goods based on the declared transaction value, subject to applicable legal and risk-management requirements.

However, the authority said consolidated cargo presents unique challenges because it can contain numerous small consignments belonging to different traders.

To facilitate faster clearance, Customs uses a minimum yield test for containers carrying commonly imported general goods. The test provides a reference point for identifying containers that meet established thresholds and can be cleared with minimal Customs intervention.

KRA said the minimum yield was last reviewed in the 2022/23 financial year, but significant changes in the operating environment, including exchange rates, freight charges and national and East African Community tax laws, necessitated a fresh review.

The revised minimum yield of Sh3.2 million took effect on August 21, 2026, following consultations with industry stakeholders.

KRA said it had initially granted traders a one-month grace period after stakeholders requested additional time to prepare for implementation.

The authority, however, stressed that the Sh3.2 million figure does not represent the actual tax liability for goods contained in a particular container.

Instead, it is a risk-management reference used under the simplified clearance arrangement. The actual taxes payable are determined by the nature, value and classification of the goods in accordance with applicable customs valuation and tax laws.

Traders who believe the minimum yield does not reflect the actual value of their goods can opt out of the simplified arrangement and request Customs to verify the contents of their containers.

They can also de-consolidate their cargo into individual parcels or consignments, allowing each importer to make an individual declaration and pay taxes directly to KRA based on the actual goods and their correct customs value and classification.

KRA said it would continue supporting small-scale traders and legitimate businesses while taking measures to prevent abuse of customs procedures.

The authority said its objective was to balance trade facilitation with the need to protect government revenue and maintain a fair business environment.
Some of those affected have since moved to court accusing the government of violating their rights. The matter was slated for September 22.