Small-scale traders vow to protest until KRA reviews Ksh.3.2M cargo clearance charges

The new threshold, which took effect on August 21, has raised the cost of clearing consignments from Ksh.2.5 million to Ksh.3.2 million, adding to the financial burden on traders.

Traders and consolidators, who handle the collection of cargo on their behalf, said protests against the increment will continue until the Kenya Revenue Authority (KRA) reviews and reduces the new charges.

Small-scale traders have threatened to stop clearing their goods from the Port of Mombasa, escalating their protest against a higher customs clearance threshold for consolidated cargo that they say has sharply increased the cost of bringing merchandise to their shops.

The traders’ demonstrations in Nairobi on Friday marked the latest expression of growing discontent over the increase, which took effect on August 21.

They are now calling on the taxman to review and withdraw the new rates, which have pushed the cost of clearing consolidated consignments from Ksh.2.5 million to Ksh.3.2 million.

Cargo clearing agents have also reported a decline in business since the new rates came into force.

Consolidating agents, who handle the collection of goods on behalf of traders, say the additional Ksh.700,000 burden is too high, particularly for small-scale importers.

“Consolidator ndiye anayeleta na kulipia huo mzigo. Ikiongezewa, ina-impact kwa trader kwa sababu trader ataongezea kulingana na kiwango ambacho ameongezewa,” Peter Ngacha Kinuthia, patron of small-scale traders, stated.

The traders most affected are those who bring in relatively small quantities of merchandise from overseas markets.

They argued that KRA’s explanation that importers will be taxed according to the value and nature of their individual consignments has done little to resolve their concerns.

“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,” Linda Nyawanda, KRA Commissioner for Customs and Border Control, stated.

However, traders say the process of opening containers and individually assessing goods would create further delays, particularly where several importers share a single container.

“Ukileta huo mzigo na container moja iko na watu 60, inakuwa shared entry na watu 60. Ukiagiza mali China, kwanza itachukua muda. Ukiagiza mzigo China, itachukua miezi sita. Hiyo ni biashara moja ambayo traders hawawezi taka,” Kinuthia stated.

They are urging the taxman to reconsider the new rates, pointing out that import duties vary depending on the type of goods imported and should therefore take into account the circumstances of small-scale traders.

“Ushuru unafanywa na mahesabu. Container moja ya viatu ni tofauti na ya toys. Hii benchmark tuliekewe iko juu,” Kinuthia stated.

The Nyeri branch of the Kenya National Chamber of Commerce and Industry (KNCCI) has thrown its weight behind the traders, calling on the government to listen to their grievances and review the new tax measures.

“This will trickle down, affecting the consumer. There should be another solution to this,” Ibrahim Ndegwa, chairperson of KNCCI-Nyeri, stated.

The standoff now threatens to disrupt the flow of cargo through the Port of Mombasa if traders continue withholding their consignments, potentially worsening congestion at the country’s main gateway for imported goods.