NAIROBI, Kenya — President William Ruto has agreed to reduce the Kenya Revenue Authority’s (KRA) benchmark for general consolidated cargo from Sh2.5 million to Sh2 million following consultations with traders and stakeholders over rising importation and clearance costs.
The agreement is aimed at easing the cost of doing business for thousands of traders and small and medium-sized enterprises while improving transparency, compliance and accountability in the consolidated cargo sector.
The President held talks with representatives of traders and other stakeholders following recent disagreements over the benchmark used by KRA in assessing consolidated imports.
Under the agreement, the existing rates for ready-made garments, footwear and fabrics will remain unchanged, while newly negotiated rates for air cargo will continue to apply.
Advance Cargo Declaration requirement removed
The Government will also remove the Advance Cargo Declaration requirement as part of measures to streamline the clearance of consolidated imports and facilitate legitimate trade.
The changes will, however, be accompanied by tighter controls on the goods and businesses operating under the consolidated cargo framework.
KRA will develop and publish an exclusion list identifying goods that will not qualify for clearance under the general consolidated cargo arrangement.
The list will take into account the value and nature of goods, applicable specific tax rates, excisable products and other customs and revenue considerations.
The Government said the measure is intended to give traders and cargo consolidators greater certainty over which goods qualify for consolidation and ensure the framework is applied consistently.
KRA to vet all cargo consolidators
All cargo consolidators will be required to undergo fresh vetting and registration by KRA.
They will also have to provide comprehensive details of the individual traders and importers whose goods they consolidate.
The deadline for completing the registration and vetting process, as well as submitting the required trader information, has been set for October 15, 2026.
The requirement is expected to give authorities greater visibility over consolidated imports while strengthening accountability across the supply chain.
It will also enable KRA to establish clearer links between individual importers, consolidators and the goods entering the country.
Nairobi and Mombasa to get de-consolidation centres
The Government will facilitate the establishment and operation of designated de-consolidation centres in Nairobi and Mombasa.
The centres will allow consolidated cargo to be separated efficiently for individual traders and are expected to improve cargo handling and clearance.
The Government said the facilities will also help reduce unnecessary logistical and administrative costs associated with the movement and handling of consolidated imports.
The measure is intended to create a more predictable system for traders while improving transparency in cargo processing.
Government to reserve some jobs for Kenyans
The agreement also includes measures aimed at increasing opportunities for Kenyan citizens in retail and other lower-level employment.
The Government will expand existing legislation to reserve retail trade and specified lower-level jobs for Kenyans, while defining areas where foreign participation will be permitted.
Foreign investment that brings capital, technology, value addition and quality employment will continue to be encouraged.
The Government said the approach is intended to protect opportunities for Kenyans without discouraging foreign investment that contributes to economic growth and job creation.
Government, counties to support traders
The National Government will also work with county governments to improve the business environment for traders.
The County Aggregation and Industrial Parks (CAIPs) programme will be leveraged to support businesses while protecting legitimate traders from unnecessary harassment, intimidation and disruption.
The initiative is part of a broader effort to strengthen local businesses, improve access to infrastructure and create opportunities for small and medium-sized enterprises.
Committee to oversee implementation
A multi-stakeholder committee chaired by the Cabinet Secretary for Investments, Trade and Industry will be established to oversee implementation of the agreement.
The committee will bring together KRA, relevant Government agencies, traders, cargo consolidators and other stakeholders.
Its responsibilities will include monitoring implementation, addressing emerging issues and reporting quarterly to the President on progress.
The arrangement is intended to provide a formal mechanism for resolving disputes and ensuring that the commitments made under the agreement are implemented.
Traders expected to comply with tax rules
The Government said the agreement represents a new partnership with traders based on consultation, predictability, compliance and shared responsibility.
Traders and consolidators will be expected to comply with customs and tax requirements and operate within the agreed framework.
In return, the Government has committed to simplifying trade procedures, reducing unnecessary costs, improving infrastructure and creating an environment in which legitimate businesses can grow.
The reduction of the general consolidated cargo benchmark from Sh2.5 million to Sh2 million is therefore expected to provide immediate relief to affected traders, while the new registration, disclosure and de-consolidation measures will give the Government greater oversight of the sector.
