NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has raised the customs minimum benchmark for general containerised consolidated cargo from Sh2.5 million to Sh3.2 million, in a move aimed at closing valuation loopholes and protecting compliant traders from unfair competition.
The revised benchmark took effect on August 20, 2026, following consultations between KRA, the Kenya International Freight and Warehousing Association (KIFWA), small traders, cargo consolidators and other private-sector stakeholders.
KRA said the adjustment is intended to create a more predictable customs valuation framework while addressing cases where cargo consolidation arrangements have allegedly been exploited to evade taxes.
The authority, however, stressed that the Sh3.2 million figure is not a flat valuation for every 40-foot consolidated container.
Where the actual value of goods is higher than the benchmark, importers must declare the correct value and pay the applicable customs duties and taxes.
What the new Sh3.2 million benchmark means
The customs benchmark is a minimum reference value used by KRA when assessing general containerised consolidated cargo for customs purposes.
Under the previous arrangement, the benchmark stood at Sh2.5 million and had remained unchanged for about six years.
KRA said the review followed changes in economic conditions, import values and the nature of goods entering Kenya.
The authority said the new benchmark should not be interpreted to mean that every consolidated container will automatically be assessed at Sh3.2 million.
A container carrying electronics, machinery, specialised equipment or other high-value goods could have a significantly higher actual customs value.
KRA has therefore directed importers whose goods exceed the benchmark to make accurate declarations and subject their cargo to the applicable customs valuation and tariff treatment.
KRA says move is not targeting small traders
The tax authority sought to reassure small-scale importers that the new benchmark is not intended to shut them out of international trade.
KRA said cargo consolidation remains an important and legitimate mechanism through which small traders can combine shipments in a single container and reduce the cost of importing goods.
The authority said the concern is instead with traders who allegedly exploit consolidation arrangements through undervaluation, under-declaration, misdescription, misclassification or concealment of goods.
According to KRA, such practices result in revenue losses and create an unfair advantage over businesses that correctly declare their goods and pay the required taxes.
“This is not about targeting small traders. It is about creating a level playing field where businesses compete fairly,” KRA said.
The authority added that compliant traders should not be disadvantaged by competitors who obtain lower costs by deliberately avoiding customs obligations.
High-value goods under scrutiny
KRA said high-value electronics, including smartphones, are among the goods that can be affected by customs valuation manipulation.
For example, a high-end smartphone could allegedly be declared as a lower-value model in an attempt to reduce the customs value and the amount of tax payable.
The authority also raised concern over larger importers increasingly using consolidation arrangements, arguing that some could be attempting to reduce their tax obligations.
KRA said the practice distorts competition and undermines businesses that comply with customs and tax requirements.
Six-year-old benchmark revised
The previous Sh2.5 million benchmark was established following consultations between the Government and small traders.
According to KRA, there had been an understanding that the benchmark would be reviewed upwards after one year. However, the review did not take place and the threshold remained unchanged for approximately six years.
The move to Sh3.2 million is therefore intended to provide a more current reference point for customs administration.
KRA said the adjustment also reflects the changing nature and value of goods imported through consolidated cargo arrangements.
Impact on legitimate businesses
The authority said stronger customs valuation controls are also intended to protect local manufacturers and legitimate importers.
Undervalued imports can enter the Kenyan market at artificially low prices, potentially giving them an advantage over locally manufactured goods whose producers meet tax and other regulatory obligations.
KRA argued that fair competition should be based on efficiency, quality and innovation rather than the ability to avoid taxes.
The revised benchmark therefore forms part of a broader effort to strengthen customs compliance and reduce revenue leakage.
Importers still required to declare actual value
KRA has emphasised that the benchmark does not establish a ceiling on the value of imported goods.
For example, if a consolidated container contains goods whose actual customs value is Sh5 million, an importer cannot simply declare Sh3.2 million because that is the benchmark.
The actual value must be declared and the applicable customs valuation and tariff treatment applied.
This distinction means that the new benchmark is primarily a minimum reference point, rather than a uniform tax calculation for every consolidated shipment.
Compliance continues after customs clearance
KRA has also reminded traders that customs compliance is only one part of their tax obligations.
Once imported goods enter the domestic market, businesses selling them in commercial centres such as Eastleigh, Kamukunji, Nyamakima and Toy Market must meet applicable domestic tax requirements.
These obligations may include appropriate business registration, electronic invoicing requirements where applicable, and accurate declaration of income and taxes due.
The authority said traders should therefore view compliance as covering the entire supply chain, from importation to final sale.
KRA, traders seek balance
The new benchmark follows consultations between KRA and industry stakeholders, reflecting an attempt to balance the interests of small importers with the Government’s need to protect customs revenue.
Cargo consolidation remains particularly important for small traders because sharing container space can lower the cost of international shipping and make importing goods more accessible.
However, KRA argues that the same system can be abused when importers deliberately misrepresent the value, description or classification of goods.
The authority says the revised benchmark is intended to address those loopholes without eliminating the benefits of consolidation for compliant traders.
What small importers should do
Importers using consolidated cargo arrangements should ensure that their declarations accurately reflect the goods being brought into the country and their actual value.
Businesses should also retain relevant import documentation and ensure that their domestic tax obligations are met after the goods are cleared.
The key point for traders is that Sh3.2 million is a minimum customs benchmark, not an automatic valuation for every container.
Where goods are worth more, the higher actual value must be declared.
KRA said the ultimate objective is to ensure that businesses compete on a level playing field while protecting Government revenue and supporting legitimate trade.
