Ruto Orders Review of Customs Clearance Charges for Consolidated Cargo

NAIROBI, KENYA — President William Ruto has ordered a review of customs clearance charges for consolidated cargo following protests by small-scale traders, proposing that containers carrying high-value goods be treated differently from those containing ordinary merchandise.

Speaking during a meeting with Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi, on Wednesday, Ruto said the government was prepared to address concerns surrounding the customs clearance arrangement while maintaining that all Kenyans have a responsibility to contribute taxes to fund government services.

Under the proposed approach, containers carrying ordinary goods would attract a clearance charge of Ksh.2 million, while consignments containing high-value merchandise would undergo further assessment based on the nature and value of the goods.

Ruto Questions Uniform Clearance Threshold

The President questioned whether a single customs threshold should apply to containers carrying goods with significantly different values.

He said the Ksh.2.5 million figure used by the Kenya Revenue Authority (KRA) had been based on an assumption that the goods inside a consolidated container were worth approximately Ksh.6 million.

However, Ruto noted that some containers could carry merchandise worth substantially more, raising questions over whether such consignments should attract the same customs treatment as lower-value cargo.

The President said he was willing to consider traders’ concerns and reduce the charge for containers without high-value goods, while insisting that the government must continue collecting revenue to finance public services.

KRA Ordered to Identify High-Value Goods

Ruto directed KRA to provide traders with a clear list of goods classified as high-value and therefore excluded from the ordinary consolidation arrangement.

The move is intended to provide greater clarity on how customs officers will distinguish between ordinary merchandise and higher-value items during the assessment process.

The President also directed KRA to improve transparency within the consolidation sector by establishing a proper register of consolidating agents and the traders whose goods they handle.

He said the system should make it possible to identify both the consolidators and the individual traders using their services.

Kenya Railways Charges Also Targeted

Ruto further announced a reduction in charges imposed by Kenya Railways on containers undergoing deconsolidation where high-value goods are identified.

He said the government had asked Kenya Railways to reduce the charge from approximately Ksh.55,000–Ksh.58,000 per container to Ksh.10,000.

The reduction is expected to ease the additional financial burden faced by traders whose consolidated consignments require deconsolidation for further customs assessment.

Traders Had Protested Ksh.3.2 Million Charge

The announcement follows protests by small-scale importers over a Ksh.3.2 million customs clearance charge for consolidated cargo.

The traders argued that a uniform benchmark did not adequately reflect the different types and values of goods imported through shared containers.

They maintained that customs duty should be determined according to the actual nature and value of individual consignments rather than applying a blanket charge.

The traders had threatened to continue demonstrations until the government reviewed the arrangement.

KRA Open to Value-Based Assessment

KRA Commissioner for Customs and Border Control Linda Nyawanda had previously said the authority was willing to assess goods according to their actual value and nature rather than strictly applying the Ksh.3.2 million benchmark.

Nyawanda said the figure was not a mandatory statutory charge and that traders could have their consignments assessed based on the goods contained in their containers.

However, traders have raised concerns that opening and individually assessing consignments inside shared containers could result in significant delays, particularly where a single container contains goods belonging to dozens of importers.

The latest directive by President Ruto is therefore expected to pave the way for further discussions between the government, KRA, Kenya Railways and small-scale traders on a customs framework that balances revenue collection with the need to facilitate trade.

The government is also expected to clarify the criteria for high-value goods and how the revised clearance arrangements will be implemented.