The Kenya Revenue Authority (KRA) has clarified that the new Ksh3.2 million minimum threshold for consolidated cargo is not the actual tax traders must pay, as small-scale traders prepare to stage nationwide protests and shut down businesses on Friday, August 28.

🇰🇪 Breaking It Down

KRA was on Thursday, August 27, forced to clarify the matter after traders demanded that it reverse the benchmark to Ksh2.5 million, arguing that the new requirement has increased the cost of doing business.

KRA said the Ksh3.2 million figure is instead a risk-management reference used under the simplified customs clearance arrangement for containers carrying commonly imported general goods.

“The minimum yield does not represent the actual tax liability,” KRA stated, adding that taxes are determined by the goods’ nature, value and classification.

📌 What You Need to Know

KRA said the minimum yield test provides a simplified way of clearing consolidated cargo without requiring every small-scale trader to present individual transaction documents.

The arrangement allows traders to pool their shipments, making the clearance process faster and more predictable while reducing the administrative burden associated with handling numerous small consignments.

The Authority said the minimum yield was last revised in the 2022/2023 financial year, following significant changes in the trading environment.

KRA cited changes in exchange rates, freight charges, and national and East African Community tax laws as some of the factors necessitating the review.

Following consultations with industry stakeholders, KRA granted a one-month grace period after traders requested additional time to prepare for the changes.

It was after the grace period that KRA said it revised the Ksh3.2 million minimum yield from Ksh2.5 million, which subsequently took effect on August 21, 2026.

📰 Source: Kenyans.co.ke