NAIROBI, Kenya – Small-scale importers using shared shipping containers must now ensure their personal and cargo details are accurately declared to the Kenya Revenue Authority (KRA), as the tax agency tightens accountability in the consolidated cargo business.
Under a directive that took effect on September 13, 2026, cargo consolidators and customs agents are required to provide details of every individual trader whose goods are transported in a consolidated shipment.
The information includes the importer’s full name, KRA Personal Identification Number (PIN), national identity card number, telephone number, description of the imported goods and their value.
In a public notice dated October 28, KRA said it was working with consolidators to facilitate the issuance of electronic tax invoices through the Electronic Tax Invoice Management System (eTIMS) to individual importers.
The initiative is intended to improve transparency, strengthen compliance with customs and tax laws and enable eligible VAT-registered traders to claim input VAT on qualifying imports.
The changes affect thousands of small businesses that rely on consolidated cargo to bring in merchandise without paying for an entire shipping container.
What Is Consolidated Cargo?
Consolidated cargo is a shipping arrangement in which goods belonging to different importers are combined in one container and transported together.
Instead of paying for an entire container, each trader pays for the space occupied by their merchandise and shares the transportation costs with other importers.
For example, traders importing clothes, electronics, shoes and household goods can have their consignments shipped together, making international freight more affordable.
The arrangement is particularly useful to small-scale businesses that import relatively small quantities of merchandise and cannot fill a full container on their own.
However, although the goods share a container, they remain the property of individual traders and must be properly identified for customs declaration and tax purposes.
KRA’s new requirements seek to ensure that every consignment can be traced to its respective importer rather than being treated as an unidentified portion of a larger shipment.
Why the Sh2 Million Customs Benchmark Matters
One of the major issues affecting consolidated cargo traders in 2026 has been the customs benchmark used to facilitate clearance of general consolidated shipments.
In August, KRA raised the minimum benchmark for general containerised consolidated cargo from Sh2.5 million to Sh3.2 million, effective August 20, 2026. The authority said the adjustment was intended to address undervaluation and under-declaration of imported goods.
The increase triggered complaints from small-scale traders, who argued that the higher benchmark would raise their importation costs.
Following consultations between President William Ruto, government officials and traders on September 2, the government agreed to reduce the benchmark for general consolidated cargo from Sh2.5 million to Sh2 million.
The revised Sh2 million figure is a customs clearance benchmark, not a flat tax charged on every container or an automatic tax bill for each importer.
The actual customs value and applicable taxes depend on the goods being imported, their classification, value and the relevant customs and tax laws.
High-value goods and items subject to special tax treatment may also require separate consideration under the applicable customs arrangements.
Information Every Importer Must Provide
Under the directive, consolidators must ensure that individual importers’ details are declared when consolidated goods are imported.
The required information includes:
- Full name: The identity of the individual trader or importing business.
- KRA PIN: The importer’s tax identification number.
- National ID number: To support identification and accountability.
- Telephone number: A contact through which the importer can be reached.
- Description of goods: Details of the merchandise being imported.
- Value of goods: The declared value of the individual consignment.
KRA says consolidators, customs agents and importers must ensure that the information is complete and accurate for all consolidated cargo imports.
The requirements are intended to make it easier to establish who owns particular goods, verify declarations and address discrepancies during customs clearance.
What Importers, Consolidators and Customs Agents Must Do
The new arrangement places responsibilities on the different parties involved in consolidated shipping.
Importers must provide accurate personal details, PIN information, descriptions of their merchandise and supporting documentation, including the correct value of their goods.
Cargo consolidators must collect and submit the details of individual traders whose merchandise is included in shared containers.
Customs agents must facilitate declarations and clearance in accordance with the applicable customs requirements, ensuring that the information supplied by importers is properly captured.
The measures are also intended to discourage practices such as under-declaration, misdescription and undervaluation, which can undermine revenue collection and create unfair competition among traders.
How eTIMS Could Benefit Small Traders
Another significant part of the changes involves the issuance of electronic tax invoices through eTIMS.
KRA says it is working with cargo consolidators to facilitate the issuance of electronic tax invoices to individual traders and importers whose merchandise arrives through consolidated shipments.
This is particularly relevant to VAT-registered businesses that want to claim input VAT on qualifying imports.
Input VAT refers to VAT incurred on eligible business purchases and imports, which a registered taxpayer may deduct when calculating VAT payable on taxable supplies, subject to the applicable legal requirements.
The availability of an electronic invoice does not automatically guarantee an input VAT deduction. Traders must still satisfy the relevant VAT documentation, eligibility and compliance conditions.
The initiative is intended to improve record-keeping and give individual importers better documentation of their transactions.
Can Traders Request Individual Assessment?
Importers who do not wish to use the simplified consolidated cargo clearance arrangement can seek customs verification and individual assessment of their consignments.
They may also opt for deconsolidation, a process through which goods are separated into individual consignments for assessment and clearance.
Under this arrangement, the respective importers can have their goods assessed based on their actual contents, customs value and classification, with the applicable taxes determined accordingly.
This provides an alternative for traders who want their consignments assessed individually rather than relying on the simplified clearance arrangement.
What the Changes Mean for Small Businesses
For small-scale traders, consolidated cargo remains an important way of reducing freight expenses and accessing international markets without importing full containers.
However, the new declaration requirements mean that importers must pay closer attention to the accuracy of the information they provide to consolidators and customs agents.
Proper identification and documentation can also help traders maintain reliable business records and support eligible VAT claims.
The Sh2 million benchmark should not be mistaken for a fixed tax charge, while the eTIMS initiative should not be interpreted as an automatic entitlement to input VAT deductions.
KRA’s broader objective is to make consolidated imports more transparent, improve accountability and strengthen compliance while facilitating legitimate trade.
The message to traders is straightforward: sharing a shipping container does not remove the individual importer’s responsibility to declare their goods accurately and comply with customs requirements.
