President William Ruto has ordered an immediate reduction in the minimum customs benchmark for general containerized consolidated cargo, lowering the tax threshold from Ksh3.2 million back to Ksh2 million.
Addressing Micro, Small, and Medium Enterprise (MSME) traders at State House on Wednesday, the President announced the policy shift to protect small-scale importers from severe business disruptions and rising operational costs.
To ensure fairness, President Ruto directed the Kenya Revenue Authority (KRA) to compile and publish a designated list of high-value commodities that will no longer qualify for container consolidation privileges.
“Mr Commissioner General, create a list of the high-value goods and share it with these traders,” Ruto instructed KRA leadership.
The president argued that importers bringing in high-value goods worth tens of millions of shillings must pay their fair share of revenue, rather than exploiting consolidated cargo tariffs meant to cushion small traders. KRA will now assess and tax those exempt high-value items independently from standard consolidated shipments.
In a further move to lower logistics expenses for small businesses, President Ruto instructed Kenya Railways to reduce freight transport charges for cargo destined for deconsolidation, capping the rate at Ksh10,000.
The Head of State also ordered Kenya Railways to urgently rehabilitate and expand the Boma Line cargo deconsolidation and clearance facility, located adjacent to the Nairobi Central Railway Station.
“I want us to agree on one thing: that land at Boma, let us come up with a plan on how we expand that place so that traders from Kisumu and Mombasa can have an easy time verifying their goods; that place should stop looking dilapidated,” Ruto stated.
The presidential directives offer major relief to Nairobi importers, particularly those operating in commercial hubs such as Gikomba, Kamukunji, and Nyamakima. On August 28, hundreds of traders closed their shops and marched to KRA headquarters to protest a 28 percent increase in customs valuations on containerized cargo, which had brought many small importing businesses to a standstill.
Responding to trader concerns, KRA Board Chair Ndiritu Muriithi clarified that the benchmark serves as a risk-management reference point rather than a fixed tax rate. He urged importers to deconsolidate their containers at designated bonded facilities to ensure they pay duties strictly based on the actual verified value of their imported goods.
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