- KRA explains why the consolidated cargo minimum yield was raised.
- Traders can opt for individual customs assessment based on actual goods.
- New Ksh 3.2 million threshold took effect on August 21.
Kenya Revenue Authority (KRA) has moved to clarify concerns raised by small-scale traders over changes to the minimum yield applied to consolidated cargo, following a review that took effect on August 21, 2026.
In a press statement dated August 27, 2026, KRA said it recognises the importance of cargo consolidation, particularly for small-scale traders, in helping them pool shipments and access more affordable logistics.
The authority said it remains committed to ensuring that customs processes facilitate legitimate trade, protect government revenue and promote a fair business environment.
Valuation is guided by law
KRA explained that the valuation of imported goods for customs purposes is governed by law. Under Section 122 and the Fourth Schedule of the East African Community Customs Management Act, customs duty is assessed based on the transaction value of goods, a basis Kenya has applied since adopting the World Trade Organization (WTO) Customs Valuation Agreement.
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Where an import declaration is supported by proper commercial documentation, customs assesses the goods based on the declared transaction value, subject to applicable legal and risk-management requirements.
Why traders consolidate cargo
Due to their unique needs, many small-scale traders consolidate their goods to simplify shipping clearance formalities, including the payment of requisite customs taxes.
According to KRA, this arrangement offers traders a faster and more predictable clearance process while reducing the administrative burden of individually assessing numerous small consignments.
To facilitate clearance of goods imported through consolidation, customs sets a minimum yield test for containers carrying commonly imported general goods.
This provides a simplified alternative to requiring every small-scale trader to present individual transaction documents.
The minimum yield serves as a reference point for identifying containers that meet the threshold for clearance with minimal customs intervention, based on established risk parameters. It was last revised in the 2022/23 financial year.
What prompted the review
KRA said the customs value of imported goods is influenced by several factors, including the cost of goods, insurance and freight. Since the last revision, the operating environment has changed significantly, with shifts in exchange rates, freight charges, and national and East African Community (EAC) tax laws.
These changes necessitated a review of the minimum yield applicable to containers carrying general consolidated cargo to keep it relevant to prevailing trading and economic conditions.
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The review was carried out in consultation with industry stakeholders. Following a request from stakeholders for additional time to prepare for implementation, KRA granted a one-month grace period. The revised minimum yield of Ksh 3.2 million subsequently took effect on August 21, 2026.
Minimum yield is not the actual tax bill
KRA emphasised that the minimum yield does not represent the actual tax liability for goods contained in a container. Rather, it serves as a risk-management reference used under the simplified clearance arrangement, while the actual tax liability is determined based on the nature, value and classification of the goods, in accordance with applicable customs valuation and tax provisions.
Traders can opt out
The authority noted that a trader may opt out of the simplified trade facilitation arrangement and request customs to verify their container to determine applicable taxes based on the actual contents, correct customs value and proper classification.
Alternatively, traders may choose to de-consolidate cargo into individual consignee parcels or consignments, allowing respective importers to make individual declarations and pay requisite taxes directly to KRA based on their goods.
KRA said it will continue to support small-scale traders and legitimate businesses while taking appropriate measures to prevent abuse of customs procedures, and remains committed to improving customs processes in a manner that balances trade facilitation with the protection of government revenue.
By Benedict Aoya
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