The Kenya Revenue Authority (KRA) will reduce the applicable benchmark for general consolidated cargo from Ksh2.5 million to Ksh2 million following President William Ruto's intervention in a dispute involving small-scale traders.
The decision was reached after Ruto met Micro, Small and Medium Enterprise traders and stakeholders in the consolidated cargo sector at State House on Wednesday, September 2. The talks focused on concerns surrounding taxation, customs clearance and the rising cost of handling imported goods.
Under the agreement, existing rates for ready-made garments, footwear and fabrics will remain unchanged. Newly negotiated rates covering air cargo will also continue to apply.
The government will remove the Advance Cargo Declaration requirement in an effort to simplify the clearance process. KRA will also develop an exclusion list identifying goods that cannot be cleared under the general consolidated cargo framework, taking into account their value, nature and applicable taxes.
Cargo consolidators will meanwhile undergo fresh registration and vetting by KRA and will be required to disclose the individual traders and importers whose goods they handle. The process is expected to be completed by October 15, 2026.
The government will also establish designated de-consolidation centres in Nairobi and Mombasa to make it easier to separate goods belonging to individual traders and reduce logistical and administrative costs.
In another significant concession, Kenya Railways will reduce the cost of transporting cargo from the Inland Container Depot to the Bomaline De-consolidation Centre from Ksh58,000 to Ksh10,000. The new charge takes effect immediately.
The agreement follows protests and complaints from traders over rising import and clearance costs. A multi-stakeholder committee chaired by the Cabinet Secretary for Investments, Trade and Industry will now oversee implementation and report progress to the President quarterly.