Ruto Orders KRA to Restore Sh2.5 Million Container Cargo Benchmark

David Wafula

1 hour ago

President William Ruto has signed the Sovereign Wealth Fund Bill, 2026 into law, establishing a national investment fund designed to preserve wealth generated from Kenya's natural resources and strategic investments for future generations. The new law creates a framework for investing revenues from petroleum, minerals and other strategic assets, with the aim of promoting long-term economic stability and sustainable national development. President Ruto described the legislation as a historic milestone that will ensure the country's natural resource wealth benefits both present and future generations. "With this consequential law, Kenya has put in place watertight mechanisms that will ensure the resources attained from strategic assets and natural resources endure for generations," Ruto said. He said the Sovereign Wealth Fund would ensure that proceeds from petroleum and other valuable mineral resources are not entirely consumed by the current generation but are invested for the benefit of future Kenyans. The Act establishes three key investment windows under the fund. The Stabilisation Fund will cushion the economy against internal and external shocks, while the Strategic Investment Window will finance commercially viable national development projects aimed at stimulating economic growth and creating jobs. The third component, known as the Urithi Fund, will preserve a portion of revenues from petroleum and mineral resources for future generations. Under the new law, 30 per cent of revenues generated from petroleum and mineral resources will be channelled into the Urithi Fund, with the remaining funds allocated to economic stabilisation and strategic investments. The Sovereign Wealth Fund becomes the second major financial institution established under the government's economic transformation agenda after the creation of the National Infrastructure Fund (NIF) in March 2026, which was designed to mobilise private capital for infrastructure development. Deputy President Kithure Kindiki welcomed the enactment of the law, describing it as one of Kenya's most significant economic reforms. "The entry into force of the Sovereign Wealth Act is one of the most consequential economic steps ever," Kindiki said. He noted that the legislation establishes a ring-fenced investment fund financed through proceeds from oil and mineral sales to help shield the country from economic shocks, including global crises such as the recent conflict involving Iran. According to Kindiki, part of the fund will be invested in commercially viable strategic infrastructure projects to generate returns, while 30 per cent of the proceeds will be reserved for future generations. "Today, Kenya has joined the ranks of Norway, the UAE, Kuwait and Botswana, ensuring use of the proceeds from our natural resources benefits both the current and future generations," he said.

President William Ruto has directed the Kenya Revenue Authority (KRA) to restore the Sh2.5 million benchmark for general containerised consolidated cargo, reversing a recent increase to Sh3.2 million.

Ruto issued the directive on Wednesday, September 2, 2026, during a meeting with Micro, Small and Medium Enterprises (MSMEs) and traders at State House, Nairobi.

The President said the move would help cushion small businesses from rising import-related costs.

KRA had increased the benchmark for general containerised consolidated cargo from Sh2.5 million to Sh3.2 million, with the revised figure taking effect in August. The decision triggered complaints from small-scale importers who argued that the higher benchmark would increase the cost of importing goods.

Ruto told traders that the Sh2.5 million benchmark should be restored.

He also directed KRA to identify high-value goods that should be excluded from the consolidated cargo arrangement.

“Mr Commissioner General, create a list of the high-value goods and share it with these traders,” Ruto said.

According to the President, high-value goods should be assessed separately rather than being subjected to the consolidated cargo benchmark.

The distinction is intended to ensure that expensive imports are not assessed under a framework designed for consolidated cargo involving smaller consignments.

KRA has previously clarified that the consolidated cargo benchmark does not mean every container is automatically assigned a tax bill based on the stated amount.

The authority describes the figure as a minimum yield benchmark used in customs valuation rather than a fixed tax charge for every shipment.

The issue has particularly affected small traders who import goods collectively because they may not have enough merchandise to fill an entire shipping container on their own.

Under consolidated cargo arrangements, consignments belonging to several importers are transported in the same container before being separated during the clearance process.

Traders had raised concerns that the increase from Sh2.5 million to Sh3.2 million could raise their importation costs and put additional pressure on small businesses.

Ruto also directed Kenya Railways to sharply reduce the charge for transporting a 20-foot container.

The President said the cost, which he described as being capped at Sh75,000, should be reduced to Sh10,000.

“I am also directing Kenya Railways, the container charges on traders, which is usually capped at Sh75,000, I am reducing it to Sh10,000,” Ruto said.