President William Ruto has reached an agreement with traders and stakeholders in the consolidated cargo sector to reduce the cost of importing goods and streamline cargo clearance.
The agreement follows concerns over taxation, clearance and handling of consolidated imports, which had triggered disagreements between traders and the Kenya Revenue Authority (KRA).
Under the new measures, KRA will reduce the applicable benchmark for general consolidated cargo from Sh2.5 million to Sh2 million. “The agreement reached today establishes a new partnership based on consultation, predictability, compliance and mutual responsibility,” the
Government said in a communiqué issued on Wednesday, September 2, 2026.
The existing rates for ready-made garments, footwear and fabrics will remain unchanged. Newly negotiated rates for air cargo will also remain in effect.
The Government will further remove the Advance Cargo Declaration requirement as part of efforts to simplify cargo clearance and facilitate legitimate trade.
KRA will, however, develop and publish an exclusion list identifying goods that will not qualify for clearance under the general consolidated cargo framework.
The list will consider the value and nature of goods, specific tax rates, excisable goods and other customs and revenue considerations.The move is intended to provide traders and cargo consolidators with greater certainty over which goods can be consolidated and ensure consistent application of the new framework.
All cargo consolidators will also undergo fresh vetting and registration by KRA. They will be required to submit comprehensive details of individual traders and importers whose goods they consolidate.
The deadline for registration, vetting and submission of trader disclosures has been set for October 15, 2026. The Government will also 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 while improving cargo handling and clearance.
In another immediate intervention, Kenya Railways will slash the cost of transporting cargo from the Inland Container Depot to the Bomaline De-consolidation Centre. The charge will fall from Sh58,000 to Sh10,000 with immediate effect. The Government said the reduction would help lower the cost of moving goods and reduce logistical and administrative expenses for traders.
The agreement also provides for expanded legislation to reserve retail trade and specified lower-level jobs for Kenyans while clearly defining areas where foreign participation will be permitted.
Foreign investment that brings capital, technology, value addition and quality jobs will continue to be encouraged.
The National Government will work with county governments to create a conducive business environment, including through the County Aggregation and Industrial Parks programme.
It also pledged to protect legitimate businesses from unnecessary harassment, intimidation and disruption.
A multi-stakeholder committee chaired by the Cabinet Secretary for Investments, Trade and Industry will oversee implementation of the agreement. The committee will bring together KRA, Government agencies, traders, consolidators and other stakeholders. It will address emerging issues and submit quarterly progress reports to the President.
The Government said traders, importers, manufacturers, logistics operators and micro, small and medium-sized enterprises remain “an essential pillar of Kenya’s economy.”
“Traders and consolidators will comply with customs and tax requirements and operate within the agreed framework,” the communiqué said. The Government, in turn, pledged to continue simplifying trade procedures, reducing unnecessary costs, improving infrastructure and creating an enabling environment for legitimate businesses to grow.