NAIROBI, Kenya- Businesses in parts of Nairobi remained closed on Friday as traders took part in a strike over changes to customs valuation and what they describe as the rising cost of doing business.
The protest is being driven by traders from major commercial centres including Kamukunji, Gikomba and Nyamakima, who are opposed to the Kenya Revenue Authority’s decision to raise the Customs Minimum Benchmark for consolidated cargo from Sh2.5 million to Sh3.2 million.
The increase represents a Sh700,000 jump, or 28 per cent, with the new benchmark taking effect on August 20, 2026. Traders say the change will increase the cost of importing goods and further squeeze their profit margins.
The dispute had been building for weeks before Friday’s shutdown.
On August 11, traders from Nyamakima and Kamukunji publicly opposed the planned increase, warning that the higher customs benchmark would raise the cost of importing consolidated cargo.
By August 27, the MSME Alliance of Kenya had called for further engagement with KRA, saying consultations showed that the Sh3.2 million benchmark was too high for many small and medium-sized traders to sustainably absorb.
KRA defends new benchmark
KRA has rejected the interpretation that every trader is required to pay taxes based on a fixed Sh3.2 million valuation.
In a clarification issued on August 27, the authority said the figure is a minimum reference point used for risk management under the simplified customs clearance arrangement for consolidated cargo.
KRA said importers with proper commercial documentation are assessed according to the actual transaction value of their goods.
The authority said the review was prompted by changes in exchange rates, freight charges and tax laws since the previous benchmark was introduced. It also argued that the system was necessary to address practices including undervaluation, under-declaration, misdescription and misclassification of goods.
For traders, however, the distinction has done little to calm the dispute.
Their concern is that the higher benchmark will ultimately increase the amount they have to pay to bring merchandise into the country, making it more difficult for small businesses to compete.
Not all Nairobi traders joined strike
The shutdown has not been uniform across the capital.
The Eastleigh Business Community urged traders in the area to keep their businesses open and avoid demonstrations, saying it was pursuing dialogue with KRA over the tax grievances.
The association said discussions with the tax authority were ongoing and called for a negotiated solution.
The differing positions highlight the divisions within Nairobi’s trading community over how best to respond to the new customs regime.
Wider pressure on small businesses
The traders’ strike comes at a time of growing tension between small businesses and government agencies over taxation, customs enforcement and the cost of operating in Nairobi.
The government has defended the customs changes as part of efforts to improve compliance and protect revenue, while traders maintain that small businesses are being placed under increasing financial pressure.
The current dispute therefore goes beyond the Sh700,000 adjustment in the customs benchmark.
