- KRA has raised the cargo valuation reference point from Ksh2.5 million to Ksh3.2 million.
- The new figure is a benchmark, not an automatic value for every container.
- KRA says the change targets under declaration while protecting compliant traders and government revenue.
The Kenya Revenue Authority (KRA) has increased the minimum reference point for general containerised cargo from Ksh2.5 million to Ksh3.2 million, aiming to curb under-declaration by importers.
The new threshold took effect on August 20, 2026, following consultations with the Kenya International Freight and Warehousing Association (KIFWA) and small trader representatives.
KRA clarified that the higher benchmark does not mean every container will automatically be valued at Ksh3.2 million. Rather, the figure will serve as a reference point when the Authority checks whether importers have declared the correct value of their goods and paid the appropriate customs tax.
KRA said the move seeks to build a more predictable and equitable customs valuation framework, while tackling the misuse of cargo consolidation arrangements.
The previous Ksh2.5 million reference point had stayed unchanged for years despite shifting economic conditions and rising import values. KRA said the revised figure gives customs administration a more current and reliable benchmark.
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The Authority reiterated that the update is meant to promote fairness in trade, safeguard government revenue, and prevent compliant businesses from being undercut by traders who dodge customs obligations.
Consolidation abuse under scrutiny
Cargo consolidation, where small traders combine multiple shipments into a single container to cut shipping costs, remains a legitimate practice, KRA noted. However, some importers have exploited the arrangement through under-valuation, misdescription, misclassification, and concealment of high-value goods.
Such practices, KRA warned, create revenue leakage and distort market competition by letting non-compliant businesses import goods at artificially low costs.
High-end smartphones were cited as a recurring example, with some importers reportedly declaring premium devices as lower-value models to reduce the taxable customs value.
KRA was keen to stress that the revised threshold should not be read as a standoff between the Authority and the trading community.
“The Authority recognises the important contribution of small businesses,” it said, adding that most traders and consolidators already comply with customs requirements and pay the taxes due.
By Benedict Aoya
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