President Ruto lowers cargo benchmark to Sh2 million after traders’ pressure

The government has reduced the customs benchmark for general consolidated cargo to Sh2 million following pressure from small traders.

President William Ruto announced the decision after meeting traders and other stakeholders at State House in Nairobi on Wednesday. The move comes after the Kenya Revenue Authority increased the benchmark for a consolidated 40-foot container from Sh2.5 million to Sh3.2 million in August. The rise led to protests by small importers who use consolidated containers to bring in smaller amounts of goods.

On August 28, police used tear gas to disperse traders protesting in Nairobi. Several businesses in the city centre were forced to close.

KRA had defended the higher benchmark, saying it was meant to stop under-declaration and undervaluation of imported goods. The agency said the benchmark was used as a guide for customs valuation and was not a fixed assessment for every shipment. Under the agreement, the rate for general consolidated cargo will now drop from Sh2.5 million to Sh2 million.

President Ruto also directed that ordinary goods should be handled separately from high-value products instead of placing all goods in a container in the same valuation category. The changes will not affect all goods. Existing rates for ready-made clothes, footwear and fabrics will remain in place. The new rates for air cargo will also continue.

The government will remove the Advance Cargo Declaration requirement. KRA will publish a list of goods that will not qualify for the general consolidated cargo arrangement, based on their value, nature, tax rates, excise duty and other customs conditions.

KRA will also register and vet cargo consolidators again. Consolidators will have to provide full details of the traders and importers whose goods they handle. The exercise is expected to be completed by October 15, 2026. The government plans to establish deconsolidation centres in Nairobi and Mombasa to make it easier to separate cargo and reduce handling and clearance costs.

Kenya Railways has cut the cost of moving cargo from the Inland Container Depot to the Bomaline De-consolidation Centre from Sh58,000 to Sh10,000. This will save traders Sh48,000.

A committee chaired by the Cabinet Secretary for Investments, Trade and Industry will oversee the agreement and give quarterly reports to the President.