- Small traders halt cargo clearance over higher KRA charges
- Importers warn rising costs could squeeze already thin profit margins
- Traders threaten nationwide protests if KRA does not review the charges
Small-scale importers and micro-enterprises have suspended cargo clearance in protest against increased taxes, levies and administrative charges imposed after the expiry of a relief period offered by the Kenya Revenue Authority (KRA).
The traders said the new charges would raise the cost of importing goods and put additional pressure on small businesses already struggling with operating expenses.
They have called on KRA to review the charges, warning that the increased costs could erode their profit margins and make it difficult for some traders to remain in business. The traders have also threatened to stage a nationwide business strike and peaceful demonstrations on Friday should their concerns remain unresolved.
Their protest comes ahead of a 28 per cent increase in the baseline valuation of consolidated cargo, which is scheduled to take effect on August 21. The adjustment will raise the valuation from Ksh 2.5 million to Ksh 3.2 million per container, consequently increasing the amount payable during clearance.
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The traders said they were not opposed to paying taxes but wanted the charges to be reasonable and introduced through proper consultations. They argued that the latest increases had been implemented without adequate engagement with the affected business community.
The MSME Alliance-Kenya president, Ben Mutahi, called for dialogue between traders and KRA to address the concerns and provide a platform for discussing the wider challenges facing small businesses. Mutahi said engagement between the two sides would help find practical solutions without undermining revenue collection.
The traders maintained that their objection was not aimed at avoiding their tax obligations but at seeking a fairer tax regime that would allow them to continue operating sustainably.
By Jonathan Mwinzi
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