The Kenya Revenue Authority (KRA) has raised its minimum customs benchmark for general containerized consolidation cargo from KES 2.5 million to KES 3.2 million.
The new figure took effect on August 20, 2026, after months of talks between KRA, the Kenya International Freight and Warehousing Association, small traders and other players in the cargo consolidation business.
What the Benchmark Does
Consolidation lets small traders share a single container to cut shipping costs, and it’s a common way for businesses to import goods affordably. KRA uses a benchmark figure as a minimum reference point when assessing the value of a container’s contents for tax purposes.
That figure is not a fixed price tag for every container. If a container holds electronics, machinery or other goods worth more than KES 3.2 million, the importer still has to declare the real value and pay tax on that amount.
READ: Kenya Imports 28 Times More ICT Equipment Than It Exports
KRA has been explicit that the benchmark is a floor, not a cap, and exists to tighten valuation checks rather than set a maximum worth for imported goods.
Why Did the Change Happen?
The old KES 2.5 million figure had been in place for roughly six years. It was set through an agreement between traders and the government that included a plan to revisit it after a year, but that review never happened, even as import costs and the value of goods coming into the country shifted over time.
KES 3.2 million is meant to reflect current conditions rather than numbers from six years ago.
KRA also pointed to a pattern of abuse within consolidation arrangements. Some importers have used the shared-container system to undervalue goods, under-declare quantities, misdescribe or misclassify items, or hide high-value products among lower-value ones.
A frequently cited example is a high-end smartphone declared as a cheaper model to lower the tax bill. KRA says it has also seen larger importers, not just small traders, using consolidation to shrink their tax obligations.
The Argument of Fairness
KRA frames the update as a way to stop compliant traders from being undercut by those who dodge taxes through misdeclaration.
A business that imports and declares honestly ends up paying more per unit than a competitor who under-declares the same goods, which distorts competition in the market.
READ: Biggest Taxpayers Remain a Small Group of Formal Businesses, KRA Data Shows
The authority makes a similar argument about local manufacturers. Goods that enter the country undervalued can be sold more cheaply than domestically produced alternatives, putting local manufacturers who pay full tax at a disadvantage.
Tightening the valuation benchmark is meant to close that gap.
Compliance Doesn’t Stop At the Border
KRA is also reminding traders that clearing customs is not the end of their tax obligations. Goods sold on afterward, including in markets like Eastleigh, Kamukunji, Nyamakima and Toy Market, still need to comply with domestic tax rules.
READ: KRA Introduces Blockchain Platform to Reduce Port Delays and Paperwork
That covers proper business registration, electronic invoicing where required, and accurate reporting of income and sales.
