The Kenya Revenue Authority (KRA) has clarified the newly revised KSh3.2 million minimum yield for general consolidated cargo, effective August 21.
According to the authority, the minimum yield is not the actual tax payable by traders and does not apply as a standard fixed tax bill for small-scale traders who combine shipments in the same container.
The clarification comes after small-scale traders prepared planned demonstrations and a nationwide business shutdown on August 28, 2026, over rising import costs and taxes.
In a press statement issued on August 27, 2026, KRA explained that the set KSh 3.2 million minimum yield is used to simplify the clearance of consolidated cargo.
“It is important to emphasize that the minimum yield is not a representation of the actual tax liability for the goods contained in a container. Rather, it is a risk-management reference used under the simplified clearance arrangement,” part of the statement read.
Earlier in July, the Kenya National Chamber of Commerce and Industry (KNCCI) said the previous KSh2.5 million benchmark would remain in force until August 20, when the new KSh3.2 million threshold would take effect.
KRA on minimum yield
According to KRA, the minimum yield is part of a simplified customs clearance arrangement for consolidated cargo.
Small-scale traders often combine their goods with those of other importers in one container to reduce shipping and administrative costs.
Rather than requiring Customs to assess numerous small consignments in every consolidated container, KRA uses the minimum yield as a reference point to determine whether a container falls within established risk parameters and can be cleared with limited Customs intervention.
How customs valuation works
Kenya’s customs valuation framework is based on the East African Community Customs Management Act (EACCMA) and the World Trade Organization’s Customs Valuation Agreement.
KRA argues that the primary basis for valuation is the transaction value, which is the price paid or payable for imported goods, subject to the requirements of the law.
Where an importer has proper commercial documentation, the authority states that Customs may assess the goods based on the declared transaction value.
However, the authority’s assessment of the declared transaction value is subject to applicable legal and risk-management requirements.
In addition, the authority emphasizes that import duty rates generally vary according to the product, with the EAC Common External Tariff providing different rates.
At the same time, other charges such as VAT and excise duty may also apply depending on the goods.
Why KRA Revised the Threshold
The KRA last reviewed the minimum yield for consolidated cargo during the 2022/23 financial year, and it has changed since then.
Among the factors cited by the authority during the review were changes in exchange rates, freight charges, and national and East African Community tax laws.
According to the Kenya Revenue Authority, the review was to ensure the minimum yield remained relevant to prevailing economic and trading conditions.
The review was also conducted in consultation with industry stakeholders.
After stakeholders requested more time to prepare, KRA granted a one-month grace period before the revised threshold took effect.
Business Owners Planned Protest
Traders in Nairobi’s Kamukunji, Gikomba and Nyamakima markets are among those opposed to the new business tax, saying the 28 percent increase has added Sh700,000 to what the previously paid and is reducing their profit margins.
Additionally, the Micro, Small and Medium Enterprises (MSME) Alliance of Kenya has opposed the Kenya Revenue Authority’s decision to raise the minimum benchmark for consolidated cargo from KSh2.5 million to KSh3.2 million.
Following concerns about the new business tax, small-scale traders are expected to hold a planned protest on August 28, with traders in Nairobi expected to march to Times Tower, KRA’s headquarters, to present their grievances over the increased cost of importing goods and taxation concerns.
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