NAIROBI, Kenya – The Kenya Revenue Authority (KRA) has clarified the new Sh3.2 million minimum yield requirement for containers carrying general consolidated cargo, saying the figure is a customs risk-management reference and does not represent the actual tax liability for individual traders.
The clarification follows concerns raised by small-scale traders over the revised minimum yield applicable to consolidated shipments.
In a statement dated August 27, 2026, KRA said it recognises the importance of cargo consolidation, particularly for small-scale traders who pool shipments to access more affordable logistics and simplify customs clearance.
The Authority said it remains committed to facilitating legitimate trade while protecting government revenue and ensuring a fair business environment.
KRA explains Sh3.2 million minimum yield
KRA said customs valuation of imported goods is governed by Section 122 and the Fourth Schedule of the East African Community Customs Management Act (EACCMA).
Under the law, customs duty is generally assessed using the transaction value of imported goods, subject to applicable legal and risk-management requirements.
However, KRA said the unique nature of consolidated cargo used by small-scale traders requires a simplified clearance mechanism.
Many traders combine their goods in a single container to reduce shipping and administrative costs rather than having each small consignment processed separately.
Why KRA revised the minimum yield
To facilitate clearance of consolidated cargo, Customs uses a minimum yield test for containers carrying commonly imported general goods.
The test provides a reference point for determining whether a container meets the threshold for simplified clearance with minimal Customs intervention.
KRA said the minimum yield had last been reviewed during the 2022/23 financial year.
Since then, the operating environment has changed significantly.
The Authority cited changes in exchange rates, freight charges and national and East African Community tax laws as factors that affected customs values and necessitated a review.
Following consultations with industry stakeholders, KRA revised the minimum yield applicable to general consolidated cargo to Sh3.2 million.
The revised threshold took effect on August 21, 2026, after the Authority granted traders a one-month grace period following a request from stakeholders for additional preparation time.
Sh3.2 million is not the actual tax bill
KRA stressed that the minimum yield should not be interpreted as the actual tax liability for all goods inside a container.
Instead, it is a risk-management reference used under the simplified clearance arrangement.
The actual customs liability depends on factors including the nature, value and classification of the imported goods, together with applicable customs valuation and tax laws.
KRA said the customs value of imported goods can also be affected by costs such as freight and insurance.
This means traders should not assume that every container subject to the minimum yield will automatically attract taxes calculated on a Sh3.2 million customs value.
Traders can opt for individual customs assessment
KRA said small-scale traders who do not wish to use the simplified consolidation arrangement have alternatives.
A trader may request Customs to physically verify the contents of a container and determine the applicable taxes based on the actual goods, their correct customs value and proper classification.
Traders can also choose to de-consolidate their cargo into individual consignee parcels or consignments.
Under that arrangement, individual importers can make separate declarations and pay the applicable taxes directly to KRA based on their respective goods.
The options are intended to give traders greater flexibility while ensuring that customs duties are assessed in accordance with the law.
KRA says consolidation remains important for small traders
Cargo consolidation remains an important trade facilitation mechanism for small-scale importers because it allows several traders to share shipping and clearance costs.
KRA said the system can provide traders with a faster and more predictable clearance process while reducing the administrative burden involved in processing numerous small consignments separately.
The Authority said the revised minimum yield was introduced to ensure that the simplified system remains relevant to prevailing economic and trading conditions.
Authority promises balance between trade and revenue protection
KRA said it would continue supporting small-scale traders and legitimate businesses while taking measures to prevent abuse of customs procedures.
The Authority said its objective is to improve customs processes while balancing two priorities: facilitating legitimate trade and protecting government revenue.
Traders who require an assessment based on their actual goods can instead request verification and individual customs valuation.
