The Kenya Revenue Authority (KRA) has raised the minimum reference point for general containerised cargo from Ksh2.5 million to Ksh3.2 million to curb under-declaration by some traders during importation.

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KRA said the new rule took effect on August 20, 2026, after consultations with the Kenya International Freight and Warehousing Association (KIFWA) and representatives of small traders.

In a statement on Tuesday, August 25, KRA clarified that raising the minimum reference point to Ksh3.2 million does not mean every container of imported goods is automatically valued at that amount .

Instead, the Authority will use the figure as a reference when checking whether traders have correctly declared the value of their goods and paid the right amount of customs tax.

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"This seeks to establish a more predictable and equitable framework for customs valuation while addressing concerns over the misuse of cargo consolidation arrangements," KRA said.

KRA reiterated that the revised benchmark is intended to promote fairness in trade, protect government revenue and ensure compliant businesses are not disadvantaged by traders who evade customs obligations.

According to the Authority , cargo consolidation remains a legitimate way for small traders to reduce international shipping costs by combining several shipments in one container.

However, the arrangement has previously been abused through practices such as under-valuation, misdescription, misclassification, and concealment of high-value goods.

"These practices create revenue leakage and distort competition by allowing non-compliant businesses to bring goods into the country at artificially low costs," the Authority added.

KRA warned that such practices allow non-compliant traders to bring goods into the country at artificially low costs, putting businesses that comply with customs requirements at a disadvantage.

📰 Source: Kenyans.co.ke