NAIROBI, Kenya, Aug 28 – The Kenya Revenue Authority (KRA) has clarified that the Sh3.2 million minimum yield for consolidated cargo is a risk-management benchmark and not a fixed tax or flat charge imposed on every container.
KRA said the benchmark is used under a simplified customs clearance arrangement to identify containers that meet established risk parameters for clearance with minimal intervention.
The actual tax payable, it said, is determined by the nature, value and classification of the goods contained in each shipment.
The clarification comes after small-scale traders raised concerns over the increase in the minimum yield from Sh2.5 million to Sh3.2 million, arguing that the higher benchmark would increase their import costs and squeeze business margins.
Traders in Nairobi’s Kamukunji, Gikomba and Nyamakima markets had threatened to shut their businesses on Friday, August 28, in protest against the revised customs benchmark.
The increase represents a 28 percent rise, or Sh700,000, from the previous minimum yield, which had been in place since the 2022/23 financial year.
Cargo consolidation allows several small traders to pool their goods in one container, enabling them to share shipping, logistics and clearance costs instead of importing individual containers.
KRA sought to address the central concern over how the new benchmark would affect the tax payable on consolidated shipments.
“It is important to emphasize that the minimum yield is not a representation of the actual tax liability for the goods contained in a container.”
“Rather, it is a risk-management reference used under the simplified clearance arrangement.”
Under the arrangement, the minimum yield provides Customs with a reference point for determining whether a container carrying commonly imported general goods can qualify for simplified clearance.
Traders whose shipments meet the relevant parameters can therefore avoid the administrative burden of having every individual consignment subjected to separate assessment.
KRA said cargo consolidation remains an important option for small-scale traders, particularly because it allows them to pool shipments and access more affordable logistics and clearance services.
The authority said the actual customs liability continues to depend on the goods imported, their transaction value and correct customs classification, with other components such as freight and insurance also influencing customs value.
Traders who want their shipments assessed outside the simplified arrangement can request Customs to verify the cargo and determine the applicable taxes based on the actual contents, value and classification.
They can also choose to de-consolidate their cargo, allowing individual importers to make separate declarations and pay the taxes applicable to their respective goods.
KRA said the revised benchmark was introduced after a review of the operating environment since the previous revision in 2022/23.
The authority cited changes in exchange rates, freight charges and national and East African Community tax laws as factors that necessitated the review.
The taxman said the review was conducted in consultation with industry stakeholders and that it granted a one-month grace period after traders requested more time to prepare for implementation.
The revised minimum yield took effect on August 21, 2026.
The authority’s clarification comes amid heightened concern among small-scale importers over the potential effect of the higher benchmark on their businesses.
While traders have linked the increase to higher import costs, KRA maintains that it should not be interpreted as a Sh3.2 million tax bill for each consolidated container.
The authority has also cited concerns around undervaluation, under-declaration, misdescription, misclassification and concealment of goods in its efforts to strengthen controls around consolidated cargo.
KRA said it would continue to facilitate legitimate trade while ensuring customs procedures protect government revenue and maintain a level playing field for businesses.
The dispute now centres on how the new benchmark will be applied in practice, particularly for small traders who rely on consolidation to keep their importation and clearance costs manageable.
