The Kenya Revenue Authority (KRA) has raised the Customs Minimum Benchmark for general containerised consolidation cargo from Sh2.5 million to Sh3.2 million in a move aimed at curbing customs valuation loopholes.
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 measure seeks to create a predictable and equitable customs valuation framework while preventing traders from gaining an unfair advantage through undervaluation and other forms of non-compliance.
“This is not about targeting small traders. It is about creating a level playing field where businesses compete fairly. A trader who declares goods correctly and pays the taxes due should not be disadvantaged by another trader who gains an unfair cost advantage through undervaluation, under-declaration or concealment of goods,” KRA said.
The Authority said cargo consolidation remains an important avenue for small traders to import goods by combining shipments in one container and reducing international trade costs.
However, KRA said the arrangement had been exploited through undervaluation, under-declaration, misdescription, misclassification and concealment of high-value goods, resulting in revenue losses and distorted competition.
High-value electronics, including smartphones, were cited as an example, with KRA warning that some goods could be declared as lower-value models to reduce customs duties and taxes.
The Authority stressed that the Sh3.2 million figure is a minimum reference point and not a flat valuation for every container.
“The KSh3.2 million benchmark does not mean that every container is valued at KSh3.2 million. If the actual value of the goods is higher, that value must be declared and the correct taxes paid. The benchmark is intended to strengthen valuation controls, not to provide a ceiling for the value of imported goods,” KRA said.
The previous Sh2.5 million benchmark had remained unchanged for about six years despite changes in economic conditions, import values and the nature of goods entering Kenya.
KRA said the new measure will also protect local manufacturers and legitimate businesses from competition created by undervalued imports.
“Fair competition requires businesses to compete on the basis of efficiency, quality and innovation, rather than through avoidance of taxes. Protecting the integrity of the customs system also protects compliant businesses and supports local manufacturing,” the Authority said.
KRA further reminded traders that compliance extends beyond customs clearance, requiring businesses selling goods in markets such as Eastleigh, Kamukunji, Nyamakima and Toy Market to meet applicable domestic tax obligations.
