Relief for traders as Ruto orders review of Ksh.3.2M consolidated cargo clearance charges

President William Ruto has ordered a review of the Ksh.3.2 million customs clearance charge for consolidated cargo following protests by small-scale traders, proposing that high-value goods be treated differently from ordinary consignments.

Speaking during a meeting with Micro, Small and Medium Enterprises (MSME) traders at State House, Nairobi, on Wednesday, Ruto said the government was willing to address concerns raised over the increased customs clearance threshold but maintained that all Kenyans must contribute taxes to support government operations.

The Head of State directed that containers carrying ordinary goods continue to pay Ksh.2 million, while those containing high-value goods undergo further assessment based on the value of the items inside.

"Kama hakuna high-value items, tupunguze bei mpaka Ksh.2 million," he stated. 

"Kama kuna bidhaa za bei ghali zitolewe kwanza. Container ambayo haina high-value items tuendelee na bei ya zamani. Ones with high-value items lazima ijulikane ni nini." 

He questioned whether a uniform customs clearance threshold should apply to containers carrying goods of significantly different values.

"Mnataka pesa irudishwe ifike either Ksh.2.5 million ama Ksh.2 million? Nataka niwaulize nyinyi, mnajua vile pesa ya serikali inapatikana ndio tuweze kulipa walimu, askari, all these things we're doing?" Ruto posed.

"Tukubali kwanza lazima sisi wote tuchangie. Shida ambayo iko hapo ndani, hawa watu wa KRA, wanasema Ksh.2.5 million. Assumption ni bidhaa ya container ni around Ksh.6 million, hence ushuru ni Ksh.2.5 million. Lakini kuna wakati mwingine bidhaa ni Ksh.20 million, anafaa kulipa kweli Ksh.2.5 million? Niko tayari kufanya vile mmesema lakini pia nataka tukubaliane."

Ruto further directed the Kenya Revenue Authority (KRA) to provide traders with a list of high-value items that would not qualify for the consolidation arrangement.

The President also called for greater transparency in the consolidation business, directing KRA to establish a proper register of consolidating agents and the traders whose cargo they handle.

"Pia tunataka kujua consolidators ni akina nani. Bwana KRA, get a proper list of consolidators and also for consolidators, know the traders who you're consolidating for to be accountable and transparent," Ruto stated.

In a further concession to traders, Ruto said the government had directed Kenya Railways to reduce charges imposed on containers undergoing deconsolidation where high-value goods are discovered.

"We have asked Kenya Railways that for those doing deconsolidation, if you're found with high-value items, to reduce the amount per container from Ksh.55,000 or Ksh.58,000 to Ksh.10,000," Ruto stated.

The development comes after small-scale traders staged protests over the Ksh.3.2 million clearance charge, vowing to continue demonstrating until KRA reviewed the new arrangement.

The traders had maintained that import duty should be determined by the type and value of goods being imported, arguing that a uniform benchmark did not reflect the varying value of merchandise carried in consolidated containers.

KRA Commissioner for Customs and Border Control Linda Nyawanda had previously said the tax authority was willing to assess goods based on their actual value and nature rather than strictly applying the Ksh.3.2 million benchmark.

"We are not insisting on the Ksh.3.2 million. You can open your container, we look at the items and assess the fair tax. It is not a law," Nyawanda stated.

However, traders had argued that individually assessing goods inside shared containers would cause significant delays, particularly where a single container carries consignments belonging to dozens of importers.