KRA Tightens Rules on Imported Goods

The Kenya Revenue Authority (KRA) has tightened rules on imported goods by raising the minimum customs benchmark for general containerized consolidated cargo from KSh2.5 million to KSh3.2 million, aiming to curb undervaluation and tax evasion.

In a statement on August 25, KRA said the new 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 move is aimed at stopping traders from undervaluing, under declaring or misclassifying goods to reduce the amount of tax they pay.

“Kenya Revenue Authority (KRA) has implemented the revised Customs Minimum Benchmark for general containerized consolidation cargo, with the benchmark adjusted from KSh2.5 million to KSh3.2 million, effective 20 August 2026.

The implementation marks the conclusion of a transitional period following extensive consultations between KRA, the Kenya International Freight and Warehousing Association (KIFWA), representatives of small traders, cargo consolidators, and other private-sector stakeholders,” read part of the statement.

KRA Says New Import Rules Will Protect Compliant Traders

Cargo consolidation allows several small traders to combine their goods in one container, reducing the cost of importing goods.

However, KRA said the arrangement has also been misused to facilitate customs violations.

The authority said some importers have been declaring goods at values lower than their actual worth, giving them an unfair advantage over businesses that pay the required taxes.

The taxman added that high-value electronics, including smartphones, are among the goods that can be affected.

KRA said a high-end phone, for example, could be declared as a cheaper model to reduce the customs value and taxes payable.

The authority also raised concerns about larger importers increasingly using consolidation arrangements to reduce their tax obligations.

However, the authority clarified that the KSh3.2 million benchmark is not a fixed value for every container.

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What Importers Need to Declare

A container may contain goods worth more than KSh3.2 million, in which case the importer must declare the actual value and pay the applicable customs taxes.

KRA said the previous KSh2.5 million benchmark had remained unchanged for about six years despite changes in economic conditions, import values and the nature of goods entering the country.

The authority said the new benchmark is also intended to protect local manufacturers and compliant businesses from unfair competition.

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According to KRA, undervalued imports can enter the market at lower prices, putting businesses that meet their tax obligations at a disadvantage.

KRA stressed that the new measure is not aimed at small traders, noting that cargo consolidation remains an important and legitimate option for businesses that comply with customs requirements.

The authority also reminded traders that their tax obligations continue after goods clear customs.

Hence, reminding traders selling imported goods in commercial centres such as Eastleigh, Kamukunji, Nyamakima and Toy Market are required to meet applicable domestic tax obligations, including business registration, electronic invoicing where applicable, and accurate declaration of income and taxes due.

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