The new Sh3.2 million customs benchmark for consolidated cargo has put KRA on a collision course with small-scale traders, with Kiharu MP Ndindi Nyoro joining the growing opposition to the measure.
Nyoro, the leader of the People’s Party of Kenya (PPK), said traders operating in key business hubs across the country should have their concerns addressed instead of being subjected to higher costs.
He singled out traders in Nyamakima, Gikomba, Kamukunji, Nairobi CBD and Eastleigh, saying their contribution to the economy could not be ignored as they struggle with rising freight charges.
Nyoro spoke on Friday, August 28, 2026, after his People’s Tour at Kamwangi in Gatundu North Constituency, Kiambu County. In a statement shared on his official X account, he criticised the decision to increase the benchmark from Sh2.5 million to Sh3.2 million.
“Traders toiling to build our economy from Nyamakima, Gikomba, Kamukunji, CBD, Eastleigh and all parts of Kenya must be listened to. The attempt to raise duty per container from Ksh 2.5M to Ksh 3.2M at a time when Fleight charges have escalated cannot be allowed to happen,” Nyoro stated.
The legislator also threw his support behind traders taking part in demonstrations against the new customs rules, saying they should not face intimidation as they demand a review of the changes.
“We stand in solidarity with our Brothers and Sisters and they must not be intimidated.”
His intervention came on a day when hundreds of small-scale traders in Nairobi protested the new customs valuation rules, forcing some businesses in parts of the CBD to shut down.
Police used tear gas to disperse some of the protesters as traders continued to voice their opposition to the Sh3.2 million benchmark.
The revised figure applies to general containerised consolidated cargo and came into force in August 2026. It raises the previous benchmark by Sh700,000, representing an increase of about 28 per cent.
Consolidated cargo is mainly used by importers who do not have enough merchandise to occupy a full container. Several traders can place their goods in the same container and share shipping and clearance expenses.
The system has been widely used by small businesses importing clothing, electronics, household products and other merchandise.
KRA has defended the change, saying the previous arrangement had been open to abuse through undervaluation and under-declaration of imported goods.
The authority has argued that some importers declared expensive goods at artificially low values to lower their tax bills. KRA has also raised concerns that some larger businesses were using consolidation arrangements intended to assist smaller traders.
However, the revenue authority has rejected claims that Sh3.2 million amounts to a fixed tax for every container.
In a clarification released on Thursday, August 27, KRA described the amount as a risk-management reference point used in the simplified clearance of consolidated cargo.
The authority said customs officials would continue determining the actual value and tax payable based on the goods contained in each shipment, including their nature, value and classification.
“If a trader or an importer believes the Ksh3.2 million is not accurate for the goods, its ok. We will verify the goods to determine the actual content, the actual classification and the actual taxes payable,” KRA Commissioner for Customs and Border Control Dr Lilian Nyawanda said.
KRA has also advised importers who feel the benchmark does not match their consignments to consider deconsolidating their cargo.
The process would enable customs officials to separate the shipments and assess individual goods according to their specific characteristics and value.
Despite the clarification, traders remain concerned that the new benchmark could raise the cost of importing goods and squeeze already narrow profit margins.
They say the impact could be made worse by increased freight charges, raising the overall cost of bringing merchandise into the country.
Traders also fear that additional expenses could eventually be reflected in the prices paid by consumers.
The strongest opposition has come from businesses in Nairobi’s main wholesale and retail markets, where imported goods support thousands of traders and jobs.
The protests on Friday brought parts of Nairobi’s business activities to a standstill as traders sought government intervention over the new customs rules.