The Kenya Revenue Authority (KRA) has started consultations with cargo consolidators to implement President William Ruto’s directive lowering the minimum customs clearance threshold for general consolidated cargo from Ksh3.2 million to Ksh2 million.
The discussions follow a meeting between KRA officials and cargo consolidators held on Friday, September 11, where the parties deliberated on the implementation of the directive and how Kenyan traders could benefit from the revised arrangement.
“Today, our leadership engaged cargo consolidators on implementing the Presidential Directive on consolidated cargo and support for Kenyan traders,” KRA stated.
The meeting was led by KRA Commissioners George Obell and Lilian Nyawanda, with participants agreeing to form a technical committee that will oversee the implementation of the President’s directive.
During the engagement, the tax authority also announced plans to immediately launch a comprehensive tax education programme targeting cargo consolidators and small-scale traders.
“We will immediately roll out a comprehensive tax education programme for cargo consolidators and small traders to strengthen understanding of and compliance with their tax obligations,” the Authority added.
The latest move comes a week after President Ruto directed KRA to lower the minimum customs clearance benchmark for general consolidated cargo from Ksh3.2 million to Ksh2 million.
The President issued the directive on September 2 during a meeting with Micro, Small and Medium Enterprises (MSME) traders at State House in Nairobi, following complaints over the higher customs clearance threshold.
Under the directive, containers carrying ordinary goods will continue to be cleared under the Ksh2 million benchmark. However, cargo containing high-value goods will be subjected to further assessment based on the value of the items being imported.
Ruto also instructed KRA to provide traders with a clear list of high-value goods that would not qualify for the consolidated cargo arrangement.
The President further called for increased transparency within the cargo consolidation business, directing the tax authority to establish a proper register of consolidating agents and the traders whose goods they handle.
The directive came after protests from small-scale traders who opposed the Ksh3.2 million customs clearance benchmark, arguing that it placed an unfair burden on importers dealing primarily in low-value goods.
With KRA now beginning consultations with consolidators and setting up a technical committee, the implementation process is expected to focus on ensuring traders understand the new requirements while addressing compliance and transparency concerns within the consolidation sector.
