KRA clarifies Ksh.3.2M minimum yield for consolidated cargo

In a statement issued on Thursday, August 27, KRA said the minimum yield is a risk-management reference point used to facilitate the simplified clearance of consolidated cargo imported by small-scale traders.

The tax authority explained that the actual customs value and tax liability of goods would continue to be determined based on the nature, value and classification of the goods, in accordance with applicable customs valuation and tax laws.

KRA noted that the valuation of imported goods is governed by the East African Community Customs Management Act and is based on the transaction value of the goods, in line with the World Trade Organization Customs Valuation Agreement.

“Where an import declaration is supported by proper commercial documentation, Customs assesses the goods based on the declared transaction value, subject to the applicable legal and risk-management requirements,” KRA stated.

The authority said many small-scale traders consolidate their goods to simplify shipping and customs clearance processes, including the payment of requisite taxes.

According to KRA, the arrangement allows traders to enjoy a faster and more predictable clearance process while reducing the administrative burden associated with individually assessing numerous small consignments.

Under the system, Customs uses a minimum yield test as a reference point to identify containers that meet the threshold for clearance with minimal Customs intervention, based on established risk parameters.

KRA said the minimum yield had last been revised during the 2022/23 financial year but changes in the operating environment had necessitated a review.

The authority cited changes in exchange rates, freight charges and national and East African Community tax laws among the factors that informed the revision.

“The revised minimum yield of Ksh.3.2 million therefore took effect on August 21, 2026,” the statement noted.

KRA said the review was undertaken in consultation with industry stakeholders and that it granted traders a one-month grace period following requests for additional time to prepare for implementation.

The authority further clarified that traders who are not comfortable with the simplified trade facilitation arrangement can opt out and request Customs to verify their containers and determine the applicable taxes based on the actual contents, correct Customs value and classification.

Alternatively, traders can de-consolidate cargo into individual consignments, allowing respective importers to make individual declarations and pay taxes directly to KRA based on their goods.