- MSME Alliance has opposed KRA’s proposed increase in the consolidated cargo customs benchmark from Ksh2.5 million to Ksh3.2 million.
- The alliance says the 28 per cent increase would raise import costs, squeeze working capital and threaten the survival of small businesses.
- It wants KRA to retain the Ksh2.5 million benchmark and consult traders before making any future changes, ahead of the August 21 implementation deadline.
Importers across Kenya are opposing a proposed 28 per cent increase in customs benchmarks for consolidated cargo, warning that the August 21 deadline could deepen financial pressure on small traders nationwide.
The MSME Alliance of Kenya has formally opposed the Kenya Revenue Authority’s (KRA) plan to raise the customs benchmark value from Ksh 2.5 million to Ksh 3.2 million. Alliance leadership says the Ksh 700,000 increase will raise the cost of imported goods, strain business capital and force some small enterprises to shut down.
“The proposed increment represents an additional Ksh 700,000, or approximately 28 per cent, which is too significant a burden for small and medium-sized traders. This raises the cost of importing goods and places additional pressure on already constrained working capital, reducing traders’ profit margins,” the alliance said.
The alliance is calling for a complete freeze on the proposal and immediate consultation with stakeholders. Its specific demands include immediate withdrawal of the proposed Ksh 3.2 million benchmark, permanent retention of the existing Ksh 2.5 million threshold, and a commitment that no future increase will proceed without meaningful consultation with affected MSME traders.
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The Ksh 3.2 million figure is not new. KRA had initially moved to raise consolidated cargo benchmarks even higher, to between Ksh 3.5 million and Ksh 10 million depending on the goods category, in a directive issued on 9 July 2026.
That move triggered widespread protests from freight forwarders and importers, who said it would sharply raise duties on shared-container imports such as electrical accessories, kitchen appliances, motorcycle spare parts and household goods, mostly cleared through the Port of Mombasa.
Following negotiations between KRA, the Kenya National Chamber of Commerce and Industry (KNCCI) and the Kenya International Freight and Warehousing Association, the parties agreed on July 20 to suspend the higher figures.
Under that deal, the existing Ksh 2.5 million benchmark would remain in force until August 20, after which a revised, lower benchmark of Ksh 3.2 million would take effect from August 21 and stay fixed for two years to give businesses predictability.
KRA also agreed to waive storage charges accrued by cargo held up under the earlier directive and to allow consolidators to request individual verification and valuation where they believe a lower duty applies.
That agreement is what the MSME Alliance is now contesting, arguing that even the reduced Ksh 3.2 million figure remains too steep for small traders relative to the Ksh 2.5 million benchmark it replaces.
By Benedict Aoya
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