KRA Cuts Consolidated Cargo Clearance Benchmark to Ksh.2 Million

NAIROBI, KENYA — The Kenya Revenue Authority (KRA) will reduce the clearance benchmark for general consolidated cargo from Ksh.2.5 million to Ksh.2 million following President William Ruto’s intervention in a dispute with small-scale traders.

The reduction is among a series of measures agreed between the government and traders on Wednesday, September 2, 2026, following weeks of concerns over taxation, customs clearance and handling costs affecting consolidated imports.

The agreement seeks to lower the cost of doing business while improving transparency and predictability in the clearance of imported goods.

KRA to Publish List of Excluded Goods

Under the new framework, KRA will develop and publish an exclusion list identifying goods that will not qualify for clearance under the general consolidated cargo arrangement.

The list will take into account factors including the value and nature of goods, applicable specific tax rates, excisable goods and other customs and revenue considerations.

The government said the measure is intended to give traders and cargo consolidators greater certainty over which goods qualify for consolidation while ensuring the rules are applied consistently.

Existing rates for ready-made garments, footwear and fabrics will remain unchanged, while recently negotiated rates for air cargo will also continue to apply.

The government will additionally remove the Advance Cargo Declaration requirement as part of efforts to simplify cargo clearance and facilitate legitimate trade.

Cargo Consolidators to Undergo Fresh Vetting

KRA will also undertake fresh vetting and registration of all cargo consolidators.

Under the agreement, consolidators will be required to provide comprehensive lists of the individual traders and importers whose goods they handle.

The registration and vetting exercise, including submission of trader disclosures, must be completed by October 15, 2026.

The government said the measure will strengthen accountability within the consolidation sector and improve transparency in the handling of imported goods.

New De-Consolidation Centres Planned

The government will facilitate the establishment and operation of designated de-consolidation centres in Nairobi and Mombasa.

The facilities are expected to enable the separation of consolidated cargo belonging to individual traders, improve cargo handling and clearance, and reduce logistical and administrative costs.

As part of the immediate measures to reduce transport expenses, Kenya Railways will cut the charge for transporting cargo from the Inland Container Depot (ICD) to the Bomaline De-consolidation Centre from Ksh.58,000 to Ksh.10,000.

The new rate takes effect immediately.

Government Moves to Protect Local Retail Trade

The agreement also includes measures aimed at strengthening opportunities for Kenyan traders and workers.

The government will expand existing legislation to reserve retail trade and specified lower-level jobs for Kenyan citizens, while clearly defining areas where foreign nationals can participate in the economy.

Foreign investment that brings capital, technology, value addition and quality employment will continue to be encouraged.

The government also committed to working with county administrations to create a more supportive business environment through initiatives such as the County Aggregation and Industrial Parks (CAIPs) programme.

It further pledged to protect legitimate businesses from unnecessary harassment, intimidation and disruption.

Multi-Stakeholder Committee to Monitor Implementation

A multi-stakeholder committee chaired by the Cabinet Secretary for Investments, Trade and Industry will oversee implementation of the agreement.

The committee will include KRA, relevant government agencies, traders, consolidators and other stakeholders.

It will be responsible for addressing emerging challenges and providing quarterly reports to the President on progress made in implementing the agreed measures.

Agreement Follows Weeks of Trader Protests

The agreement follows weeks of tension between small-scale traders and KRA over the consolidated cargo clearance benchmark.

Traders had argued that higher clearance and handling costs were increasing the cost of imports and threatening the sustainability of their businesses.

President Ruto intervened during a meeting with Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi, where he directed that ordinary goods be treated differently from high-value merchandise.

The new agreement now provides for a Ksh.2 million benchmark for general consolidated cargo, while goods excluded from the framework will be identified through the new exclusion list.

The government said the agreement is intended to establish a more predictable partnership with traders based on consultation, compliance, transparency and mutual responsibility.

Traders and consolidators will be expected to comply with customs and tax requirements and operate within the agreed framework, while the government has committed to simplifying trade procedures, reducing unnecessary costs and improving infrastructure to support legitimate businesses.