Kenya Raises Customs Benchmark For Consolidated Cargo To KSh3.2bn

By Mintesinot Nigussie  |  August 26, 2026

The Kenya Revenue Authority has raised the minimum customs benchmark for general containerised consolidation cargo to KSh3.2 million from KSh2.5 million, in a move aimed at tightening valuation controls and curbing customs under-declaration.

The revised benchmark took effect on August 20, following consultations with the Kenya International Freight and Warehousing Association, small traders, cargo consolidators and other private-sector representatives.

The authority said the previous KSh2.5 million benchmark had remained unchanged for about six years despite changes in economic conditions, import values and the composition of goods entering Kenya. The earlier benchmark was introduced following discussions between small traders and the government, with an understanding that it would be reviewed after one year.

KRA said cargo consolidation remains an important mechanism for small traders to reduce the cost of importing goods by combining shipments in a single container. It has, however, identified cases involving undervaluation, under-declaration, misdescription, misclassification and concealment of high-value goods.

The authority cited high-value electronics, including smartphones, as products that can be affected by such practices, with some importers allegedly declaring higher-value products as cheaper models to reduce customs duties.

KRA stressed that the KSh3.2 million figure is a minimum reference point rather than a flat valuation for every container. Goods whose actual customs value exceeds the benchmark must be declared at their correct value and subjected to the applicable customs valuation and tariff treatment.

"The KSh3.2 million benchmark does not mean that every container is valued at KSh3.2 million. If the actual value of the goods is higher, that value must be declared and the correct taxes paid. The benchmark is intended to strengthen valuation controls, not to provide a ceiling for the value of imported goods," the authority said.

KRA also raised concerns over larger importers increasingly using consolidation arrangements to reduce their tax obligations, which it said could disadvantage compliant traders.

The authority said the revised benchmark is intended to protect legitimate businesses and local manufacturers from competition created by artificially low import costs resulting from inaccurate declarations.

"Fair competition requires businesses to compete on the basis of efficiency, quality and innovation, rather than through avoidance of taxes. Protecting the integrity of the customs system also protects compliant businesses and supports local manufacturing," KRA said.

The authority stressed that the measure should not be viewed as a dispute with small traders, noting that many traders and consolidators comply with customs requirements. Its concern, it said, is with practices that create an unfair cost advantage.

KRA also reminded traders that customs compliance does not end when consolidated cargo is cleared. Businesses selling goods in commercial centres including Eastleigh, Kamukunji, Nyamakima and Toy Market must also meet applicable domestic tax requirements, including business registration, electronic invoicing where applicable, and accurate declaration of income and taxes due.

Source: FSX Business News